The question is asking if I had to rank the investment proposal in order such as

internal rate of return

profitable index

payback period

Accounting rate of return

How will I rank them?

Instructions Assess the information below. Upon completion, Analyze investment proposals by ranking them using different methods, and then submit your response in the drop box named "Ranking". Several methods are commonly used to rank investment proposals, including NPV, IRR, PI, payback period, and ARR. The most valuable aim of capital budgeting is to rank investment proposals. To choose the most valuable investment option, several methods are commonly used: Investment Proposal: Choosing the best investment proposal for business Net Present Value (NPV): NPV can be described as the "difference amount" between the sums of discounted cash inflows and cash outflows. In the case when all future cash flows are incoming, and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). The higher the NPV, the more attractive the investment proposal. NPV is a central tool in discounted cash flow (DCF) analysis and is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting and widely used throughout economics, finance, and accounting, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met. R NPV(i,N) = (1 + i)' N 1 NPV formula: Each cash inflow/outflow is discounted back to its present value (PV). Then they are summed. Therefore, NPVIS the sum of all terms In financial theory, if there is a choice between two mutually exclusive alternatives, the one yielding the higher NPV should be selected. The rules of decision making are: When NPV > 0, the investment would add value to the firm so the project may be accepted When NPV 1 then accept the project If PI 1 then accept the project If Pl