youur company is considering undertaking a project to expand an existing product line. The required rate of return on the project is 8% and the maximum allowable payback period is 3 years.

Questions

To evaluate the project, you need to understand the following methods. Discuss the following methods and how you would use them to evaluate the project:

1. Payback period
2. Internal Rate of Return (IRR)
3. Simple Rate of Return