CI 2 PA11-3 (Algo) Comparing. Prioritizing Multiple Projects [LO 11-1, 11-2, 11-3, 11-6) Hearne Company has a number of potential capital investments. Because these projects vary in nature. Intial investment and time Horizon management is finding it difficult to compare them Assume straight line depreciation method is used ture Value of $1. Presare Values Esture Value Auto St. Peter Walt Analyst) Use appropriate factore) from the tables provided) Project 1 Retooling Manufacturing Facility This project would require an inal investment of $4.980.000. It would generate $382.000 in additional net cash flow each year. The rew machinery has a useful life of eight years and a selvage value of 1930.000 Project 2 Purchase Patent for New Product The patent would cost $3,855.000, which would be fully amortized over five years. Production of this product would generate 5732.450 additional annual net income for Herne Project Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $164.400 each. The foot would have a useful life of 10 years, and each truck would have a salvage value of $6.300 Purchasing the feet would allow Hearne to expand its customer torrtoy resulting in $240.000 of additional net income per year Required 1 Determine each project's accounting rate of return 2. Determine each project's payback period 3. Using a discount rate of 10 percent, calculate the net present value of each project 4. Determine the profitability index of each project and prioritize the projects for Hearne. Complete this question by entering your answers in the tabs below. Required: Required2 Required Required 4 Determine the profitability index of each project and prioritize the projects for Hearne (und your intermediate calotion 2 dedmat. Round your answers to decima) Pro Rank Pro2 Poco San