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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 4 investments being considered for ABC Company.
Assuming an interest rate of 8%.
Part A) What is the cash payback period of each investment? (6 marks)
Part B) What is the average investment for each of the investments if the residual values
are as follows: Proposal A $250,000, Proposal B $82,500, Proposal C $35,000 and
Proposal D $54,000?(8 marks)
Part C) What is the Average Rate of Return of each investment if the average incomes are
Proposal A $62,500, Proposal B $8,250, Proposal C $17,775 and Proposal D $17,820?(4
marks)
Part D) What is the Net Present Value of each investment? (34 marks)
Part E) What is the Internal Rate of Return of each investment if the average cash flows
are Proposal A $250,000, Proposal B $88,000, Proposal C $100,000 and Proposal D
$119,000?(8 marks)
Part F) If you could only choose one investment, which one would you choose and why? (5
marks)
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