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Not sure if Accounting rate of return and NPV ( net present value are correct for prorposal A , B and C - - -
Not sure if Accounting rate of return and NPV net present value are correct for prorposal A B and Cplease help with these
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value
Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:
Proposal A Proposal B Proposal C
Initial investment $ $ $
Cash flow from operations
Year
Year
Year
Disinvestment
Life years years years year
Rank these
investment proposals using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organizations cost of capital is and that all investments are in depreciable assets.
Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate.
Proposal A Proposal B Proposal C Best proposal
Payback period years; Round answers decimal places. Answer
Answer
Answer
Answer
C
Accounting rate of return; Round answers to decimal places. Answer
Answer
Answer
Answer
AB
Net present value; Round answers to nearest whole number. Answer
Answer
Answer
Answer
A
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