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1. Evaluate and rank the investment projects provided in Table 1 based on: i. Simple rate-of-return (SRR) ii. Payback period (P) iii. Net present value
1. Evaluate and rank the investment projects provided in Table 1 based on: i. Simple rate-of-return (SRR) ii. Payback period (P) iii. Net present value (NPV) (assume i=10%) Table 1. Cash Flows for Investment Projects A, B, and C Year Investment A Investment B 0-present -$165,000 -$165,000 1 45,0 37,000 2 42,000 37,000 3 39,000 37,000 4 36,000 37,000 5 33,000 37,000 6 30,000 37,000 Investment C -$165,000 43,0 43,000 43,000 33,000 33,000 33,000
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