a. What are the NPWS of Projects I, II, III and IV with interest rate 15% compounded quarterly and the analysis for all projects period are 12 years Mutually Exclusive Alternative II III IV Capital investment ((RM) 100,000 152,000 184,000 220,000 Annual revenues less expenses (RM) 15,200 31,900 35,900 41,500 Market value (end of useful life) (RM) 10,000 15,000 20,000 b. Determine which alternatives are economically acceptable and which one should be selected. с. Which project would you recommend if they are independent projects? State your reason.

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter12: Capital Investment Analysis
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a. What are the NPWS of Projects I, II, III and IV with interest rate 15% compounded
quarterly and the analysis for all projects period are 12 years
Mutually Exclusive Alternative
I
II
III
IV
Capital investment ((RM)
100,000
152,000
184,000
220,000
Annual revenues less expenses (RM)
15,200
31,900
35,900
41,500
Market value (end of useful life) (RM)
10,000
15,000
20,000
b.
Determine which alternatives are economically acceptable and which one should be
selected.
с.
Which project would you recommend if they are independent projects? State your
reason.
Transcribed Image Text:a. What are the NPWS of Projects I, II, III and IV with interest rate 15% compounded quarterly and the analysis for all projects period are 12 years Mutually Exclusive Alternative I II III IV Capital investment ((RM) 100,000 152,000 184,000 220,000 Annual revenues less expenses (RM) 15,200 31,900 35,900 41,500 Market value (end of useful life) (RM) 10,000 15,000 20,000 b. Determine which alternatives are economically acceptable and which one should be selected. с. Which project would you recommend if they are independent projects? State your reason.
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