Reference no: EM131540011

Question: 1. Payback period, accounting rate of return, net present value, and internal rate of return are common methods to evaluate capital investment opportunities. Assume that your manager asks you to identify the type of measurement basis and unit that each method offers and to list the advantages and disadvantages of each. Present your response in memorandum format of less than one page.

2. Break into teams and identify four reasons that an international airline such as Southwest, Delta, or American would invest in a project when its direct analysis using both payback period and net present value indicate it to be a poor investment.