E12-35A (similar to) Question Help The following table contains information about four projects in which Renkas Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a. net present value. b. project profitability index. c. internal rate of return. d. payback period. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Data Table Internal Rate Profitability of Return Index 21 % 1.18 Investment Net Present Life of Project Required Value Project A......$ 210,000 $ 37,176 5 B......$ 420,000 $ 25,684 6 C.......$ 1,025,000 $ 133,942 3 D ..... $ 1,510,000 $ 59,150 4 Payback Period Accounting Rate in Years of Return 2.92 3.13 15 % 2.20 19 % 1 1.06 1.13 1.04 7% 12% 10 % 3.05 24% Check Answer Requirement 1. Rank the projects in order of preference. (a) Net Present Value Net Present Value 1st preferred 2nd preferred 3rd preferred 4th preferred