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Appraisal techniques: Accounting rate of return, payback, NPV and internal rate of return. All must be included with steps. Add what is the best project.
Appraisal techniques: Accounting rate of return, payback, NPV and internal rate of return. All must be included with steps.
Add what is the best project.
The costs associated with each project are as follows: Project A () Project B () Project C () Project D () 750,000 750,000 390,000 570,000 Initial Cost Expected Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 4 5 30,000 85,000 155,000 4.5 2150,000 250,000 150,000 275,000 300,000 75,000 170,000 Rate percent 5.0 Year 5.5 1 0.9569378 0.9523810 0.9478673 0.9433962 2 0.9157300 0.9070295 0.8984524 0.8899964 3 0.8762966 0.8638376 0.8516137 0.8396193 0.8385613 0.8227025 0.8072167 0.7920937 0.8024510 0.7835262 0.7651344 0.7472582 Table of Discount Factors 35,000 180,000 20,000 50,000 195,000 50,000 10,000 120,000 160,000 200,000 6.0 Step by Step Solution
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