Thank you :) I will upvote
The following tuble contains information about tour projects in which Rhodes Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. Click the icon to view the project information) Requirements 1. Rank the four projects in order of preference by using the a ne present value b. project profitability index d. payback period .. accounting rate of retum 2. Which method) do you think is best for evaluating capital investment projects in general? Why? internate of return Data Table (d) Payback Period Accounting Rate of Return Requirement 1. Rank the projects in order of preference (a) (b) e) Net Present Proby nemal Rate Value Index of Retum 1st preferred 2nd preferred 3rd preferred 4h preferred Project $ 5 Investment Net Present Life of Required Value Project 215,000 $ 42,475 $ 410.000 $ 72,724 6 $ 1.020.000 $ 163,812 3 $ 1.515,000 $ 85.850 4 Internal Rate Profitability Payback Period Accounting Rate of Return Index in Years of Return 22% 1.20 2.87 17% 25% 1.18 2.97 19% 1.16 2.14 13 % 13 1.05 3.00 21 % D prelemed Requirement 2. Select the method that corresponds to the appropriate explanation This method indicatos profitability by comparing the present value of the investments net cash infows with the cost of the investment (wready stated at its present vitun). This method is superior because it incorporates the time value of money. This method helps to compare the NPV across alternative Investments of varying sizes This method is indicates profitability and incorporates the time value of money. This method willow us the actual e of returning and on the investment by equating the present value of the net cash Infows to the investments cost. In other words, is the interest rate which brings the investments NPV to 20 This method will show the company powickly it recoupas investment. This method will be good for screening out more potential investments that are too risky because the period is too long However, the period will not be the sole criterion for accepting capital investments since it does not give the company any insight about the investment's profitability. Additionally, it does not incorporate the time value of money This method will give the company indication of how profitable the investment will be. However, since it does not consider the time value of money, it is not the best indicator of profitability. This method is the only method that uses scorul accountingfors. Therefore I will help the company the most of investments on the financial statements. The other methods use net cash flows. This me Accounting rate of return (ARR) le Internal rate of return De Net present value (NPV) th Payback period 3 Profitability index it
