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5. 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
5. 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=5%) iv. Internal rate-of-return (IRR) Table 1. Cash Flows for the Three Investment Projects Year Investment A Investment B O-present $75,000 -$75,000 1 15,000 20,000 2 20,000 20,000 3 25,000 20,000 4 30,000 20,000 Investment C -$75,000 30,000 20,000 15,000 15,000
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