Cagital retiontig decisiod for a service company inyoling four prepspels for each proposal are on...
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Cagital retiontig decisiod for a service company inyoling four prepspels for each proposal are on totows: the cot preses valu frethid and prastnt yalue indelts are used to rank the remeiring proposals. Reguired: 1. Compute the eash peybucir penod for each of the four prapostid 1. Somputin the eath payback period for each of the four propowais. to one decimal piace. sccepted for further aralysis and which phould be tejected, ff required, round your answers to one decimal place. Select the propscal accepted for further analyeis. 8. The analyais indicthes that atnough Froposal hat the larger net present value, it ia not os aftractive as Progosal in tarma of the amount of wratitut valve per doblin inveated. Frupese reguiver the lagrer investment. Thus, manayement should use investmint repourcet for frepogal teflere inveating in froporal aspent any sther queltative condiderations thet may impoct the decision. 1. Compute the cash payback period for each of the four proposals. 2. Giving effect to straight-line depreciation on the investments and assuming no esti to one decimal place. 1. Compute the cash payback period for each of the four proposals. 2. Giving effect to straight-line depreciation on the investments and assuming no estimated to one decimal place. 1. Compute the cash payback period for each of the four proposals. Required: 1. Compute the cash payback period for each of the four proposals. Cash Payback Period Proposal A Proposal B Proposal C Proposal D 3 years 2. Giving effect to straight-line c23 years, 6 months years, 6 months vestments and assuming no estimated res to one decimal place. 2 years, 8 months 3 years, 10 months Average Rate of Return Proposal A: % Proposal B: % Proposal C: % Proposal D: % 3. Using the following format, summarize the results of your computations in parts accepted for further analysis and which should be rejected. If required, round your 5. Compute the present value index for each of the proposals in part (4). If require Select proposal to compute Present value index. 3. Using the following format, summarize the results of your computations in parts (1) a accepted for further analysis and which should be rejected. If required, round your an 4. For the proposals accepted for further analysis in part (3), compute the net present va 5. Compute the present value index for each of the proposals in part (4). If required, Select proposal to compute Present value index. Present value index (rounded) 3. Using the following format, summarize the results of your computations in part accepted for further analysis and which should be rejected. If required, round 5. Compute the present value index for each of the proposals in part (4). If requ Select proposal to compute Present value index. Present value index (rounded) 3. Using the following format, summarize the results of your computations in pe accepted for further analysis and which should be rejected. If required, round Proposal Cash Payback Period Average Rate of Return A B C D 4. For the proposa analysis in part (3), compute the net Select the proposa analysis. Present value of ne. Amount to be invested Net present value 5. Compute the present value index for each of the proposals in part (4). If re Select proposal to compute Present value index. Present value index (rounded) our computations in parts (1) and (2). By placing the calculated amounts in the first two d. If required, round your answers to one decimal place. (3), compute the net present value. Use a rate of 12% and the present value of $1 tabl sals in part (4). If required, round your answers to two decimal places. analysis in part (3), compute the net present value. Use a rate of 12% and the present ach of the proposals in part (4). If required, round your answers to two decimal pla 5. Compute the present value index for each of the proposals in part (4). If requ Select proposal to compute Present value index. Present value index (rounded) 6. Rank the proposals from most attractive to least attractive, based on the prese Rank 1 st Rank 2nc 7. Rank st attractive to least attractive, based on the prese Rank 1st Rank 2nd 8. The analysis indicates that although Proposal has the lo dollar invested. Proposal requires the largen investment. absent any other qualitative considerations that may impa fincik ie: Tatik and 8. The anglysie indicetes that althogh Propors! Ras tha larger nat sresant value, it in not as attractive as Proposal In tarms of tha amouti ol prabekvalua fat Getlar ininstadi Fropose hatment. Thus, management ahabld use inveitmant ralourees for Propesa before inveriong in proposbi , oblent any other quelite t may impact the decasion
















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