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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

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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 b project profitability index internal rate of retum 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? Sin Requirement 1. Rank the projects in order of preference, (0) Net Present Value 1st preferred 2nd preferred 3rd prefer 4th preferred - X Data table Life of Project 5 Internal Rate of Return Payback Accounting Profitability Period in Rate of Index Years Return 21% 1.18 2.91 17% Net Investment Present Project Required Value Project A..... $ 215,000 $ 39,042 Project B..... $ 415,000 $ 57,230 Project C $ 1,040,000 $ 181,498 Project D.....$ 1,550,000 $ 22,320 6 23% 1.14 3.07 14% 3 17% 1.17 2.19 10% --- 4 11% 1.01 3.13 24%

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