3&4 only.

ACCT TB Comparing, Prioritizing Multiple Projects [LO 11-1.11-2. 11.3. 11-61 SPAN Drive + BLAW TB VHL CHEGG SpanishDict Home Company has a number of potential capital investments. Because these projects vary in nature initial investment and time horcon management is finding till to compare then Asume straight line depreciation method is used Project 1: Retooling Manufacturing Facility This project would require an initial investment of $5.200,000. It would generate $928.000 In additional net cash fow nach year. The new machinery has a useful the of eight years and a savage value of $1,084.000. Project 2: Purchase Patent for New Product The patent would cost $3,645,000, which would be fully amortized over five years. Production of this product would generate $583 200 additional anual net income for Heate Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $150,000 each. The feat would have a set to ot 10 years, and each truck would have a salvage vale $5.700. Purchasing the foot would allow Hame to expand its customer territory resulting in $600,000 of additional net income per year. Required: 1. Determine each project's accounting rate of retum (Round your answers to 2 decimal places.) Accounting Rate of Return Project 1 Project 2 Project 3 1600 2. Determine each project's payback period (Round your answers to 2 decimal places Payback Period Project 1 5.00 Years Project 2 27 Years Project 3 Years 3. Using a discount role of 10 percent, calculate the net present value of each project for $1. Blow Bree appropriate factor from the tables provided. Hound your intermediate calculations to 4 decimal places and finalmente decimal places) Net Present Value Project 1250/473.00 Project 2 143421241 Project 3 2002 4. Determine the probably index of each project and prioritne the formeRound your intermediate attente decimal places. Round your final de Profitability Rank Pro 1 1041 PRO 13647 Project CO