90.2K

Verified Solution

Link Copied!

Consider the following three projects. All three have an initial investment of $1,200,00o. EE (Click the icon to view the investments) 1. Determine the payback period of each project Rank the projects from most desirable to least desirable based on payback 2. Are there other factors that should be considered in addition to the payback period? Determine the payback period of each project Rank the projects from most desirable to least desirable based on payback. (Enter the payback period as a numeral) oint Payback period Project years years ewA Requirement 2. Are there other factors that should be considered in addition to the payback period? O A No. The payback period is the only qualitative factor necessary for a comparison af investments O B. No. The payback period is the only quantitative factor necessary for a comparison of investments elconOc. Yes. The company should consider which projects will generate cash flows after the payback period. In addion, the company should rank the projects based on the results of other evaluaton methods (og.accounting rate of return, net present value, proftability index, and internal rate of retum) and possible qualitative factors efore ayers o ched tudy p earn H you're s Choose trom any list or enter any number in the input fields and then continue to the next question owing three projects. All three have an initial investment of $1,200,000. on to vieyuthe investments) Data Table the payb other fad Net Cash Inflows 1. Determ ter the p Project L Project M Project N Year Annual Accumulated Annual Accumulated Annual Accumulated 50,000$ 200,000 200,000S 600,000 $600,000 300,000300,000500,000 600,000 200,000 450.000700,000 1,200,000 1 S 150,000 S 2 150,000 150,000 150,000 150,000 150,000 150,000 150,000 0 000.000 800,000 2.000.000 750.000900,000 2.900,000 900,000 ent 2. Are the The payback . The payback s. The compar the results of ualitative factor 1.050.000 nk the project n) and possible Print Done

Answer & Explanation Solved by verified expert

See Answer