Concept explainers
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.
Instructions
(a) Compute the cash payback period for each project. (Round to two decimals.)
(b) Compute the
(c) Compute the annual
(d) Rank the projects on each of the foregoing bases. Which project do you recommend?
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