Hiroshi Inc.is evaluating 3 investment alternatives.Each alternative requires an initial investment cash outflow of $176,000 and is to be depreciated on a straight-line basis ($6,000 salvage value).Ignore income taxes.Cash flows for the various investments are summarized below:
The company has a required rate of return of 11.2%
Required:
a.rank each alternative based on NPV
b.rank each alternative based on IRR
c.rank each alternative based on accrual accounting rate of return using average annual cash flows
d.evaluate each project based on the payback periods
Definitions:
Recognition
The act of acknowledging or identifying something as valid or as having a particular status.
Advancement
The process of moving forward in one's career, which may involve a higher position, increased responsibilities, or better salary.
Job Satisfaction
The level of contentment or happiness an individual feels regarding their job, influenced by factors like work environment, responsibilities, and compensation.
Company Policy
Formal guidelines and rules established by a business to dictate decisions and achieve rational outcomes.
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