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Mountain Manufacturing is considering the following capital investment proposals. Mountain's requirement criteria include a maximum payback period of five years and a required rate of
Mountain Manufacturing is considering the following capital investment proposals. Mountain's requirement criteria include a maximum payback period of five years and a required rate of return of 12.5%. Determine if each investment is acceptable or should be rejected (ignore qualitative factors). Rank the acceptable investments in order from most desirable to least desirable. (Click the icon to view the capital investment proposals.) Determine if each investment is acceptable or should be rejected (ignore qualitative factors) (Evaluate the criteria of each investment separately.) Project Payback NPV IRR Profitability index Rank the acceptable investments in order from most desirable to least desirable. Acceptable investments are those which are not rejected by any of the capital budgeting methods. (Rank the criteria of each investment separately. 1 = most desirable.) Rank Payback NPV IRR Profitability index i Data Table - X Project A B C Payback NPV IRR 3.15 years $ 10,250 13.0% 1.54 4.20 years $ 42,226 14.2% 2.00 years $(10,874) 8.5% 0.75 D 3.25 years $ 36,251 14.0% 2.86 5.00 years $ 0 12.5% 1.00 Profitability Index 1.92 Print Done
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