Hiroshi Inc

question 75

Essay

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

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Definitions:

Homeostasis

The process by which organisms maintain a stable internal environment despite changes in the external environment.

Autonomic Nervous System (ANS)

The segment of the nervous system responsible for regulating automatic body functions such as heartbeat, digestive processes, and breathing rate.

Muscle Tone

Relatively constant tension produced by a muscle for long periods as a result of asynchronous contraction of motor units.

Heart Rate

The number of heartbeats per unit of time, typically expressed as beats per minute (bpm), indicating cardiovascular activity.