Evaluate and rank each alternative

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Question - FINALSNA Enterprises is trying to select the best investment from among four alternative involves an initial outlay of P100,000. Their cash flows follow:

YEAR

A

B

C

D

1

10,000

50,000

25,000

0

2

20,000

40,000

25,000

0

3

30,000

30,000

25,000

45,000

4

40,000

0

25,000

55,000

5

50,000

0

25,000

60,000

Required - Evaluate and rank each alternative based on

a) discounted payback period (use a 10% for cost of capital), (present your answer as: Project A-5.5).

b) net present value (use a 10% discount rate) (present your answer as: Project B-150000).

c) internal rate of return. (present your answer as: Project C-12.50).

Reference no: EM133078553

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