Q2 To start a new chemical plant management team is considering four alternative project proposal received from different contractors as shown in Table Q2. Projected revenues and operating expenses for all four projects to achieve the desired production for the period of 6 years for are given in the following table. Identify the best project based on the following profitability methods and decide the ranking based on the following profitability methods. (i) Average rate of return (ii) Payback period (iii) Net Present value with discounting rate at 6 % (iv) Benefit to cost ratio with discounting rate at 5 % (v) Internal rate of return for Project P for range of suitable discounting rate Table Q2. Cash flow for four project proposals Year Project P Project Q - 156000 - 141000 1 15100 24500 2 17400 21100 15200 23100 21500 21300 | |o 15300 21900 21700 24800 Q2 To start a new chemical plant management team is considering four alternative project proposal received from different contractors as shown in Table Q2. Projected revenues and operating expenses for all four projects to achieve the desired production for the period of 6 years for are given in the following table. Identify the best project based on the following profitability methods and decide the ranking based on the following profitability methods. (i) Average rate of return (ii) Payback period (iii) Net Present value with discounting rate at 6 % (iv) Benefit to cost ratio with discounting rate at 5 % (v) Internal rate of return for Project P for range of suitable discounting rate Table Q2. Cash flow for four project proposals Year Project P Project Q - 156000 - 141000 1 15100 24500 2 17400 21100 15200 23100 21500 21300 | |o 15300 21900 21700 24800