The following table contains information about four potential investment projects that Castle Corporation is considering.

Project	Required Investment			Project Life	Acctg ROR		Payback Period	NPV			Profitability Index
A	$	880,000		5	37.50	%	3.5	$	449,250		1.94
B	$	1,130,000		4	20.75	%	4.7	$	679,062		2.00
C	$	1,380,000		4	21.25	%	4.4	$	219,670		1.59
D	$	1,880,000		5	21.45	%	2.6	$	249,008		1.54

Required:

1. Rank the four projects in order of preference under each method indicated by the headers:

Which method is the best for evaluating the investments?

multiple choice

• Net present value

• Accounting rate of return

• Payback period

• Profitability index

Accounting Rate of Return Payback Period Net Present Value Profitability Index 1st preferred 2nd preferred 3rd preferred 4th preferred