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e following investments for Renate Company in order of their desirability using the (a) payback period method, (b) net present value method, and (c) time-adjusted

e following investments for Renate Company in order of their desirability using the (a) payback period method, (b) net present value method, and (c) time-adjusted rate of return method. Management requires a minimum rate of return of 14 per cent.

Initial

Expected after-tax net cash

Expected life of proposal

Investment

Cash outlay

Inflow per year

(years)

A

$ 120,000

$ 15,000

8

B

150,000

26,000

20

C

240,000

48,000

10

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