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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

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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 managers have prepared about their 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. d. payback period. b. project profitability index. e. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? c. internal rate of return. Requirement 1. Rank the projects in order of preference. (a) Net Present 1st preferred 2nd preferred 3rd preferred 4th preferred Value Data table Net Project Investment Present Required Value Life of Internal Rate of Payback Accounting Project Return Profitability Index Period in Rate of Years Return Project A ..... $ Project B ..... $ Project C ..... ..... $ Project D..... $ 200,000 $ 52,350 5 22% 1.26 2.86 20% 400,000 $ 72,230 6 25% 1.18 2.96 15% 1,000,000 $ 224,075 1,500,000 $ 85,000 3 20% 1.22 2.11 13% 4 13% 1.06 3.00 21% Print Done -

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