Gavin and Alex,baseball Consultants,are in Need of a Microcomputer Network

question 44

Essay

Gavin and Alex,baseball consultants,are in need of a microcomputer network for their staff.They have received three proposals,with related facts as follows:

The company uses straight-line depreciation for all capital assets.
Required:
a.Compute the payback period,net present value,and accrual accounting rate of return with initial investment,for each proposal.Use a required rate of return of 14%.
b.Rank each proposal 1,2,and 3 using each method separately.Which proposal is best? Why?

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Definitions:

Test Statistic

A calculated value from sample data used to decide whether to reject the null hypothesis in hypothesis testing.

P-value

The P-value is a statistical parameter that helps to determine the significance of the results from a hypothesis test, indicating the probability of observing the results if the null hypothesis is true.

P-value

A statistic that measures the probability of obtaining an observed result, or more extreme, under the assumption that the null hypothesis is true.

Null Hypothesis

A statement in statistics that proposes there is no significant difference or effect, and any observed difference is due to sampling or experimental error.