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Accounting rate of return (ARR) Internal rate of retum Net present value (NPV) Payback period Profitability index (Click the icon to view the projects information.)

image text in transcribedimage text in transcribed Accounting rate of return (ARR) Internal rate of retum Net present value (NPV) Payback period Profitability index (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a. net present value. b. project profitability index. c. intemal rate of return. d. payback period. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Requirement 1. Rank the projects in order of preference. Requirement 2. Select the method that corresponds to the appropriate explanation. incorporates the time value of money. This method helps to compare the NPV across alternative investments of varying sizes. inflows to the investment's cost. In other words, it is the interest rate which brings the investment's NPV to zero. Data table

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