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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 an estimates that different

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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 an estimates that different managars 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. intemal rate of return. d. payback period. 8. accounting rate of return. 2. Which method(s) do you think is best for evaluating capital investment projects in geneeal? Why? Requirement 1. Rank the projects in order of preference. Requirement 2. Select the method that corresponds to the appropriale explanation. This method indicates profiability by comparing the present value of the investmenfs net cash inflows with the cost of the investment (already stated at its present value). This method is superior beceuse it incocporates the time value of money. This method helps to compare the NPV across akeenative investments of varying sizes. This method also indicates profitability and incorporates the tme value of money. This method will show us the actual rate of retum being earned on the investment by equating the present value of the net cash inflows to the investrnants cost, in other worts, it is the interest rate which brings the inveatmant's NPV to rero. This methed will show the company how quickly it recoups its initial investment. This method wit be good for screening out those potential investinents that are too nisky because the peried is too long. However, the poriod will not be the sole criterion for accepting capital investments since it does not give the company any insight abeut the ifwesiments proftablity. Addaionally, It does not incorporate the time value of monoy, This method will pive the company an indication of how profitable the investment will be. However, since it does not consider the time yalue of money, it is no The beot indicator of proftability This motiod is the only methed that uses accrual accounting figures. Therefore it will help the cempany assess the impact of investrents on the financial statarnants. The other methods use net cash flows. Data table

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