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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
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 their potential project. EEB (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the b. project profitability index. e. accounting rate of return C. internal rate of return a. net present value d. payback period 2.Which method(s) do you think is best for evaluating capital investment projects in general? Why? Requirement 1. Rank the proje Data Table Net Present Value Investment Net Present Life of Internal Rate Profitability Payback Period Accounting Rate 1st preferred 2nd preferred 3rd preferred 4th preferred Project Required Value Index 1.30 1.04 1.15 1.01 in Years 2.77 3.19 2.16 3.00 of Return 17% 14% 12% 24% Project $ 205,000 $ 61,770 5 $415,000 $ 7,380 6 $ 1,035,000 $ 158,760 3 $ 1,505,000 $ 19,5744 of Return 24 % 22% 19% 13% Print Done
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