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K Question 6, E12-37A (similar to) Part 1 of 7 HW Score: 20%, 2 of 10 points O Points: 0 of 2 MPM Save The
K Question 6, E12-37A (similar to) Part 1 of 7 HW Score: 20%, 2 of 10 points O Points: 0 of 2 MPM Save The following table contains information about four projects in which Jefferis 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 d. payback period b. project profitability index e accounting rate of return 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Data table c. Internal rate of return Project Investment Required Net Present Value Life of Project Internal Rate of Return Payback Profitability Period in Index Years Accounting Rate of Return Project A $ 210,000 $ 37,176 21% 1.18 2.92 19% Project B $ 420,000 $ 25,684 6 22% 1.06 3.13 16% Project C $ 1,025,000 $ 133,942 3 17% 1.13 2.20 10% Project D $ 1,510,000 $ 59,150 4 12% 1.04 3.05 23%
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