Question
A company has 4 projects for for consecutive 9 years as shown below. investment plan I II III IV Initial Investment ($) 60000 68000 99000
A company has 4 projects for for consecutive 9 years as shown below.
| investment plan | I | II | III | IV |
| Initial Investment ($) | 60000 | 68000 | 99000 | 116000 |
| Annual Cash inflow ($) | 19000 | 30000 | 35000 | 37000 |
What is the best project and decide the ranking based on the methods of profitability below.
- ARR:Average rate of return.
- PBP: Payback period.
- Net Present value at discounting rate at 8%
- Benefit to cost ratio at discounting rate at 11%
- Internal rate of return for range of suitable discounting rate
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The Curriculum Management Audit
Authors: Larry E. Frase, Fenwick W. English, William K. Poston
1st Edition
0810839318, 9780810839311
