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19-7different methods of evaluating investment: proposals. Someone had an amount of 60,000 $ Dollars , and he wanted to invest it. He had two opportunities,
19-7different methods of evaluating investment: proposals. Someone had an amount of 60,000 $ Dollars , and he wanted to invest it. He had two opportunities, each of which brought him the following streams : second chance 35000 35000 15000 15000 First chance 18000 18000 18000 18000 18000 year 1 2 3 4 5 The value of the Salvage is estimated to be 3000 $ Dollars for the first opportunity and 2000 $ Dollars for the second opportunity. Required: As a management accountant, you are asked to express an opinion on investing the amount using the following methods: 1. The recovery period. 2. The accounting rate of return if you know that the straight-line method is used. 3. The net present value, noting that the discount rate is 10%. 4. The internal rate of return on investment
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