Question
Solaris Corp. is considering the following 3 investment proposals: Investment Initial Cash Outlay Expected After-Tax Net Cash Inflow per Year Life of Proposal (Years) X
Solaris Corp. is considering the following 3 investment proposals:
| Investment | Initial Cash Outlay | Expected After-Tax Net Cash Inflow per Year | Life of Proposal (Years) |
| X | $240,000 | $30,000 | 8 |
| Y | $300,000 | $52,000 | 20 |
| Z | $480,000 | $96,000 | 10 |
Solaris requires a minimum rate of return of 10%.
a. Rank the above 3 investment proposals using the payback period method. Show computations.
b. Rank the above 3 investment proposals using the time-adjusted rate of return method. Show computations.
c. Rank the above 3 investment proposals using the net present value method. Show computations.
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New Challenges For Future Sustainability And Wellbeing
Authors: Ercan Özen, Simon Grima, Rebecca Dalli Gonzi
1st Edition
1800439695, 9781800439696
