kaiser aluminum

Future Islands Company is considering two alternative investments, Project A and Project B. The Company can only accept one of the projects. Information related to each project is presented below. Project A Project B Initial Investment 50,000 60,000 Salvage Value 5,000 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flows Project A 15,000 15,000 15,000 15,000 15,000 Project B 25,000 20,000 20,000 15,000 (includes the salvage value) The Company has a REQUIRED RATE OF RETURN (RRR) of 12%. Required: Compute Payback Period, ARR, NPV, and IRR for both projects. ROUND TO 2 DECIMAL SPACES. FOR PERCENTAGES: If using %, present 2 decimal spaces. If not using %, present 4 decimal spaces (i.e., 12.50% OR 0.1250) Use the Present Value Tables provided two questions down for your computations. PROJECT A PROJECT B Payback Period Average Annual Operating Income 15,00 Ciudes the salvage Value) Year 5 15,000 15,000 The Company has a REQUIRED RATE OF RETURN (RRR) of 12%. Required: Compute Payback Period, ARR, NPV, and IRR for both projects. ROUND TO 2 DECIMAL SPACES FOR PERCENTAGES: If using %, present 2 decimal spaces. If not using %, present 4 decimal spaces (i.e., 12.50% OR 0.1250) Use the Present Value Tables provided two questions down for your computations. PROJECT A PROJECT B Payback Period Average Annual Operating Income Accounting Rate of Return (original investment) Accounting Rate of Return (average investment) Net Present Value (NPV) Internal Rate of Return (IRR) Given the answers on the previous question, which Project should Future Islands Company accept? Why did you choose that Project? On what did you base your answer? Please provide details in providing your reasoning. BI VA - A - I. E X 1 1 x x BY E O N V G Vo 12pt HTML Editor E . Paragraph O words