Rank proposals using the payback period, unadjusted rate of return, profitability index, and time-adjusted rate of return

Rank These proposals using the following selection tecniques:

A. Payback Period

B. Unadjusted Rate of Return

C. Profitability Index

D. Time-Adjusted Rate of Return

Merryll, Inc., is considering three different investments involving depreciable assets with no salvage value. The following data relate to these investments: Expected before-tax net cash inflow per year $37,333 $72,000 $89,333 Expected after-tax net cash inflow per year $28,000 $48,000 $68,000 Life of proposal (years) 10 20 10 Investments nitial Cash Outlay $140,000 $240,000 $360,000 The income tax rate is 40%. Management requires a minimum return on investment of 12% 10 R 11A. Payback P 12 13 Rank These proposals using the following selection tecniques A. Payback Period B. Unadjusted Rate of Return C. Profitability Index D. Time-Adjusted Rate of Return 15