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Instructions a. Compute the cash payback period for each project. (Round to two decimals.) b. Compute the net present value for each project. (Round to
Instructions
a. Compute the cash payback period for each project. (Round to two decimals.)
b. Compute the net present value for each project. (Round to nearest dollar.)
c. Compute the profitability index for each project
d. Compute the annual rate of return for each project. (Round to two decimals.) (Hint: Use average annual net income in your computation.)
e. Rank the projects on each of the foregoing bases. Which project do you recommend?
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