Capital Investment Summary Put your capital investment answers in the summary Table below (4 pts each) Question # Investment A Question # Investment B Payback Period 1 3.83 yrs 6 4.69 yrs Simple Rate Interest 26.1% 7 22.0% N 00N Net Present Value 3 $27,456 8 $30,059 Profitability Index 4 3.19 9 3.35 internal Rate of Return 5 14.1% 10 25.4% Additional Questions Place an "x" in the correct box (4 pts each) T F 13 Investment A has a better payback period? Investment B has a more favorable NPV than A? Higher interest rates increase the NPV calculation? The IRR calculation requires a discount rate? The NPV takes into consideration the timing of the net cash flows? 15 16 Which Investment would you choose and why? Please elaborate. (10 pts)