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The following table contains information about four projects in which Andrews Corporation has the opportunity to invest. This information is based on estimates that different
The following table contains information about four projects in which Andrews Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. EB (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 d. payback period. b. project profitability index. e. accounting rate of return c. intemal rate of return. 2. Which method(s) do you think is best for evaluating capital investment projacts in general? Why? Requirement 1. Rank the projects in order of preference. Data Table Net Present Valuc Investment Net Present Life of Internal Rate Profitability Payback Period Accounting Rate 1st preferred 2nd preferred 3rd preferred 4th preferred Project Required alueProject of Return 21% 22 % 17% 12% in Years 2.92 3.13 2.20 3.05 of Return Index $210,000 $ 37,176 5 $420,000 25,684 6 S 1,025,000 133,942 3 $1,510,000 $ 59,150 4 17% 14% 10% 22% 1.06 1.13 1.04 PrintDone
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