1. The following data relates to five independent investment projects: Assume a 10 per cent required rate of return and a 35 per cent tax rate. Rank these five investment projects according to each of the following criteria:

(a) payback period,

(b) accounting rate of return,

(c) net present value index, and

(d) internal rate of return. Projects Initial () Annual Cash Life in Years Outlay Inflow R AACDE 500,000 125,000 0 B 120,000 12,000 15 92,000 15,000 20 5,750 2,000 5 E 40,000 6,000 10