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The following table contains information about four projects in which Rhodes 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 Rhodes 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. 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 Value 1st preferred 2nd preferred 3rd preferred 4th preferred Data table Net Present Value Investment Required Internal Rate of Return Life of Project Profitability Index Project Payback Accounting Period in Rate of Years Return 5 24% 1.30 2.77 19% 6 22% 1.04 3.19 15% Project A $ 205,000 $ 61,770 Project B $ 415,000 $ 17,380 Project C..... $ 1,035,000 158,760 Project D $ 1,505,000 $ 19,574 3 19% 1.15 2.16 10% 4 13% 1.01 3.00 25% Print Done

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