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Based on the analysis of the four proposals below, which one would you recommend? Explain your reason and include the meaning of the capital analysis
Based on the analysis of the four proposals below, which one would you recommend? Explain your reason and include the meaning of the capital analysis methods. Think of how you might communicate your analysis to others that dont know what these methods are about. (12 points)
Proposal |
Cash Payback Period |
Average Rate of Return |
Net Present Value |
Present Value Index |
A | 4 | 5% | $ (71,260) | 0.8416 |
B | 2.33 | 18% | 26,200 | 1.1310 |
C | 3.5 | 15% | 1,350 | 1.0042 |
D | 3 | 16% | 29,000 | 1.0537 |
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