Question
(15 points) M Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash
(15 points) M Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow: Evaluate and rank each alternative based on a) payback period, b) net present value (use a 10% discount rate), and c) internal rate of return.
Payback period
Net Present Value
Internal rate of return (IRR)
Investment 1 Investment 2 Investment 3 Investment 4
50000 40000 30000 20000
20000 30000 40000 50000
30000 30000 30000 30000
30000 30000 30000 30000
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
