Monitor Consulting Inc. is in need of a Date Analyte Terminal for its mancial analysts....
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Accounting
Monitor Consulting Inc. is in need of a Date Analyte Terminal for its mancial analysts. The company received three proposals with related facts as follows Proposal AProposal Proposal Initial investment in equipment$0,000$90,000$90,000 Annual cash inflow increases in operations Year 180.00045,00090,000 Year 210,00045,0000 Year 345,00045,0000 Salvage value000 Estimated life 3 yrs 3 yrs. 1 yr. The company uses straight line depreciation for all capital assets. Ignore income taxes Required: a Compute the payback period, net present value and accrual accounting rate of return using average annual income, for each proposal Use a discount rate of 14 percent. b. Rank each proposal 1, 2 and 3 using each method separately Which proposal is best? Why? Page Break
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