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The following table contains information about four projects in which Hughes Corporation has the opportunity to invest. This information is based on estimates that different
The following table contains information about four projects in which Hughes 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 a. net present value. d. payback period. b. project protitability index. e. accounting rate of return. c. internal rate of return. 2. Which method s) do you think is best tor evaluating capital investment projects in general? Why? Data Table Requirement 1. Rank the projects in order of preference Net Present Investment Net Present Life of Internal Rate Profitability Payback Periad Accounting Rate Value Project Required Value Project of Return ndex 1.30 1.05 1.21 1.00 in Years 2.77 3.18 2.13 3.03 of Return 1st preferred 2nd preferred 3rd preferred 4th preferred 24 % 22 % 19% 12% 17% 14% 10% 24 % S 205,000 S1,770 5 420,000 19,032 6 . $1,010,000 $ 214,075 3 2,796 4 S 1,540,000 S
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