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The following table contains information about four projects in which Morales Corporation has the opportunity to invest. This information is based on estimates that different

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The following table contains information about four projects in which Morales Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about potential project. (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a. net present value. b. project profitability index. c. internal rate of return. d. payback period. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? Requirement 1. Rank the projects in order of preference. (a) Net Present Data Table Value Investment Net Present Life of Internal Rate 1st preferred 2nd preferred 3rd preferred 4th preferred Profitability Payback Period Accounting Rate Index in Years of Return Project Required Value Project of Return A...... $ 200,000 $ 52,350 5 22 % 1.26 2.86 19 % B $ 400,000 $ 72,230 6 25 % 1.18 2.96 16 % 224,075 3 20 % 1.22 2.11 11 % $ 1,000,000 $ $ 1,500,000 $ D 85,000 4 13 % 1.06 3.00 25 % Print Done

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