# Answer to Question #51641 in Other Management for alexander

Question #51641

a). A company is considering the following investment projects.

Cash flows in Kes

Project Initial Outlay C1 C2

A (10,000) 10,000

B (10,000) 7,500 7,500 12,000

C (10,000) 2,000 4,000 3000

D (10,000) 10,000 3,000 3,000

Required:

Rank the projects according to:

i. Payback period (1 Marks)

ii. Accounting rate of return (1 Marks)

iii. Internal Rate of Return (2 Marks)

iv. Profitability Index (1 Marks)

v .Net present value (2 Marks)

Use 10% where cost of capital is not given especially in cases of NPV and IRR.

Cash flows in Kes

Project Initial Outlay C1 C2

A (10,000) 10,000

B (10,000) 7,500 7,500 12,000

C (10,000) 2,000 4,000 3000

D (10,000) 10,000 3,000 3,000

Required:

Rank the projects according to:

i. Payback period (1 Marks)

ii. Accounting rate of return (1 Marks)

iii. Internal Rate of Return (2 Marks)

iv. Profitability Index (1 Marks)

v .Net present value (2 Marks)

Use 10% where cost of capital is not given especially in cases of NPV and IRR.

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