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Kindly help with all four parts please!! And for the last part there are only 3 porjects so rank out of 1,2 and 3. U3
Kindly help with all four parts please!!
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 yalue The companys cost of capital is 15% (Assume that cash flows occur evenly throughout the year.) 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.) Click here to view PV table. Compute the cash payback period for each project. (Round answers to 2 decimal ploces, es. 10.50.) Project Bono years Project Edge years Project Clayton years Compute the net present value for each project. (Round answers to 0 decimal ploces, eg. 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 foctor toble provided.) Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, eg. 10.50.) Rank the projects on each of the foregoing bases. Which project do you recommend And for the last part there are only 3 porjects so rank out of 1,2 and 3.
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