are the best for your equip Section Alphabetical Number Weeknd - Chapter 10 Homework Assignment Problem I (Textbook Reference: P16-5)-Rank proposals using the payback period, unadjusted rate of return, profitability index, and time-adjusted rate of return Merry L Inc. is considering three different investments inching depreciable assets with no salvage value. The following data relate to these imestments: Expected Before Expected After Initial Cash Tax Cash Inflow Tax Cash Inflow Life of Proposal Investment Outlay e rYear Mr Year per Year 140.000 $ 37,333 $ 28.000 240,000 $ 72,000 $ 48.000 160.000 $ 89,313 5 68,000 The income tax rate is 106. Management requires a minimum return on investment of 12%. Required: Rank these proposals using the following selection techniques. Round each answer two decimal places (years) 10 (1) Payback period rankings a. Payback period calculation - Investment 1: _ b. Payback period calculation - Investment 2: C. Payback period calculation - Investment 3: (2) Unadjusted rate of retum rankings: a. Unadjusted rate of retum calculation - Investment 1: b. Unadjusted rate of retum calculation - Investment 2: c. Unadjusted rate of retum calculation - Investment 3: (3) Profitability index a. Profitability index calculation - Investment 1: _ b. Profitability index calculation - Investment 2 c. Profitability index calculation - Investment 3: (4) Time-adjusted rate or retum (IRR) rankings: 2. IRR calculation - Investment 1: b. IRR calculation - Investment 2: C. IRR calculation - Investment 3: *** Template provided on next page** Problem 10-5 Template INVESTMENTS 1. Pagback period nalah info for bra 2. adjusted rule of return Average amount of stoc Average investment original atay+sage v 2 l ik Annual net cash flow before income lanes Deduct annual depreciation original outlay.savage va Annual income before income taxes Deduction tax expense income before we Average annet income from investic tax rate Unadjusted rate of rem (3 ) 3. Profitability index Initial cash outlay Espected net cash in flow (aller Lax) Present value factor (12% minimum return on investment: 10 periods) Present value of annual act cash intownund to name abole della **Annuity inflows, souTube A4 Prodability index 2) (1) 4. Time adjusted rate of return Spl Compute payback periods ) Step 2. Find PV factor that is not to the calculated pay back pred (Refer to period now that corresponds with the life of the proposal tablet since we're Siep i mate the IRR based on your answer the Srp 2 1. Pastard were c ap ald rig Land unit) Profitability index the Ti -adjusted o n Sp.Compule packe n S PY Shp) is the IRR b y 1. Payback period 2. nadjie rate of return Average investment orginal outlas t 2 Arnaal net cash flow before income taxes Deductual depreciation forginally Annual income (hetore increas Det income tax expens ione before sex larate AWS timer Unajua of turn (2) 1. Profitability index e Expected net canin Presen value f or 12 Preventivalue of net canh Profitability index (21+il) r mon in 10 perda low fround to newest whole ole 4. Time jie rate of return Stop Compule p ack periode Simp. Find PV factor that is is the calculated pay back pri Resto periodou that correspondenththee of the proposal table d e Fatimate the IRR based on your wer from Sep 2 Sip