23. Information on four investment proposals is given below INFORMATION FOR FOUR POSSIBLE INVESTMENT PROPOSALS...

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23. Information on four investment proposals is given below INFORMATION FOR FOUR POSSIBLE INVESTMENT PROPOSALS Proposal NumberInvestment Required Net Present Value 8,000 S 12,000 10,000 4,000 3,200 3,600 2.500 2,000 4 Rank the proposals in order of their preference using present value indexes. (a) 3,2,1.4 (b) 4, 1,2,3 (c) 2,3,1,4 (d) 3,1,2,4 Use the following information to answer Questions 24 and 25. Invermere Communications is considering whether to invest in a project that costs $450,000 and will return $105,000 after tax cash flows for each of the next seven years. After seven years they anticipate a salvage value of $10,000 (after taxes). 24 What is the after tax cash payback period? (a 5.1 years. (b) 4.3 years. (c) 0.2 years. (d) 7.0 years 25 What is the after tax cash payback reciprocal? (a) 29 (b) 45.00 (c) 0.23 (d) 0.10

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