Question: You are asked to evaluate the following two projects for Ample Corporation. Use a discount rate of 13 percent. (Show all your workings and calculations.
You are asked to evaluate the following two projects for Ample Corporation. Use a discount rate of 13 percent. (Show all your workings and calculations. Round your Final answer to 2 decimal places)
| Project X 28,000 Investment | Project Y 48,000 Investment | ||
| 1 | 14,000 | 1 | 24,000 |
| 2 | 12,000 | 2 | 17,000 |
| 3 | 13,000 | 3 | 18,000 |
| 4 | 12,600 | 4 | 20,000 |
Calculate the values as per below and select which project will be selected as per each method
a.Payback period
b.NPV
c.IRR
d.Which method is most reliable to make a decision? Give two reasons
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