Question
CONSIDER THE FOLLOWING 2 MUTUALLY EXCLUSIVE PROJECTS: YEAR- CASH FLOW 0 -291,000 1 37000 2 55000 3 55600 4 366000 0 -41600 1 20000 2
CONSIDER THE FOLLOWING 2 MUTUALLY EXCLUSIVE PROJECTS:
YEAR- CASH FLOW
0 -291,000
1 37000
2 55000
3 55600
4 366000
0 -41600
1 20000
2 17600
3 17200
4 14000
WHICHEVER PROJECT YOU CHOOSE IF ANY YOU REQUIRE A RETURN OF 11% ON YOUR INVESTMENT
A. IF YOU APPLY THE PAYBACK CRITERION WHICH INVESTMENT WILL YOU CHOOSE? WHY?
B. IF YOU APPLY THE DISCOUNTED PAYBACK CRITERION, WHICH INVESTMENT WOULD YOU CHOOSE AND WHY
C. IF YOU APPLY THE NPV CRITERION WHICH INVESTMENT WOULD YOU CHOOSE AND WHY
D. IF YOU APPLY THE IRR CRITERION WHICH INVESTMENT WILL YOU CHOOSE WHY
E. IF YOU APPLY THE PROFITABILITY INDEX CRITERION WHICH INVESTMENT WILL YOU CHOOSE AND WHY
F. BASED ON YOU ANSWERS IN A-E WHICH PROJECT WILL YOU FINALLY CHOOSE AND WHY
USE EXCEL SHOW FORMULAS
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
