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K The following table contains information about four projects in which Rhodes Corporation has the Upp This information is based on estimates that different
K The following table contains information about four projects in which Rhodes Corporation has the Upp 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. c. internal rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Requirement 1. Rank the projects in order of preference. (a) Net Present Value 1st preferred 2nd preferred 3rd preferred 4th preferred Incorr (2) 2) Investment Net Present Internal Payback Accounting Life of Rate of Profitability Period in Rate of Project Required Value Project Return Index Years Return Project A $ 210,000 $ 37,176 5 21% 1.18 2.92 17% Project B $ 420,000 $ 25,684 6 22% 1.06 3.13 14% 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 21% Print Done
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