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I linked a URL to the picture http://postimg.org/image/dscs93o3l/ U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5
I linked a URL to the picture
http://postimg.org/image/dscs93o3l/
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative> use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Compute the annual rate of return for each project. Rank the projects on each of the foregoing bases. Which project do you recommendStep by Step Solution
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