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The following is a list of 4 investments being considered for ABC Company. Assuming an interest rate of 8 % . Part A ) What
The following is a list of investments being considered for ABC Company.
Assuming an interest rate of
Part A What is the cash payback period of each investment? marks
Part B What is the average investment for each of the investments if the residual values
are as follows: Proposal A $ Proposal B $ Proposal C $ and
Proposal D $ marks
Part C What is the Average Rate of Return of each investment if the average incomes are
Proposal A $ Proposal B $ Proposal C $ and Proposal D $
marks
Part D What is the Net Present Value of each investment? marks
Part E What is the Internal Rate of Return of each investment if the average cash flows
are Proposal A $ Proposal B $ Proposal C $ and Proposal D
$ marks
Part F If you could only choose one investment, which one would you choose and why?
marks
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