QUESTION 13 Cortes Cargo Inc. is considering three investment opportunities with the following payback periods: Project X Project Y Project Z ayback period 3 years 2.5 years 2.8 years Use the decision rule for payback to rank the projects from most desirable to least desirable, all else being equal. Y, Z, X X, Y, Z Z, Y, X Y, X, Z QUESTION 14 Darlis Tools Co. is considering investing in a specialized equipment costing $600,000. The equipment has a useful life of 5 years and a residual value of $60,000. Depreciation is calculated using the straight-line method. The expected net cash inows from the investment are given below: What is the accounting rate of return on the investment? 7.95% 8.78% 8.48% 9.25%