Question
The following table contains information about four potential investment projects that Castle Corporation is considering. Project A Required Investment Project Acctg Payback Life ROR
The following table contains information about four potential investment projects that Castle Corporation is considering. Project A Required Investment Project Acctg Payback Life ROR Period NPV Profitability Index $740,000 5 27.00 3.6 $305,750 2.16 B $ 990,000 4 19.00% 4.0 $ 285,562 2.14 $1,240,000 4 12.50% 3.7 $217,920 1.45 D $1,740,000 5 16.201 3.3 $247,258 1.40 Required: 1. Rank the four projects in order of preference under each method indicated by the headers: Accounting Rate of Return Payback Period Net Present Value Profitability Index 1st preferred 2nd preferred 3rd preferred 4th preferred
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