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26-6B_22e - Average Rate of Return Accept for Further...

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Problem 26-6B Name: Section: Enter the appropriate amount in the shaded cells below. A red asterisk (*) will appear above, below or to the right of an incorrect amount in the outlined cells. 1. Proposal A: -year -month cash pay-back period Year 1 2 3 months Proposal B: -year -month cash pay-back period Year 1 2 Proposal C: -year -month cash pay-back period Year 1 2 3 months Proposal D: -year -month cash pay-back period Year 1 2 3 2. Proposal A: Net Cash Flow Cumulative Net Cash Flow Net Cash Flow Cumulative Net Cash Flow Net Cash Flow Cumulative Net Cash Flow Net Cash Flow Cumulative Net Cash Flow
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÷ = ÷ Proposal B: ÷ = ÷ Proposal C: ÷ = ÷ Proposal D: ÷ = ÷ 3. Proposal Reject A B C D 4. Proposal B: Year 1 2 3 4 5 Total Amount to be invested Net present value Proposal D: Year Cash Payback Period
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Unformatted text preview: Average Rate of Return Accept for Further Analysis Present Value of $1 at 10% Net Cash Flow Presen Net Ca Present Value of $1 at 10% Net Cash Flow Presen Net Ca 1 2 3 4 5 Total Amount to be invested Net present value 5. Present value index = Total present value of net cash flow Amount to be invested = = 6. First: Second: 7. First: Second: 8. Present value index of Proposal B: Present value index of Proposal D: Based on the net present value, the proposals should be ranked as follows: Based on the present value index (the amount of present value per dollar invested), the proposals should be ranked as follows: nt Value of ash Flow nt Value of ash Flow...
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