Project 1 involves an outlay of $2.5m and gets an annual net…
Questions
Prоject 1 invоlves аn оutlаy of $2.5m аnd gets an annual net income of $1m for 5 years. Project 2 involves an outlay of $10m but gets no income until year 5. year project 1 project 2 0 -2.5 -10 1 1 0 2 1 0 3 1 0 4 1 0 5 1 15 [a]. Use the payback method to decide which is the most attractive project. [b] What is the accounting rate of return for project 1? Write your answer as a percent using the percent symbol. [c]. What is the accounting rate of return for project 2? Write your answer as a percent using the percent symbol. [d] Decide which is the most attractive project using the accounting rate of return method.
Prоject 1 invоlves аn оutlаy of $2.5m аnd gets an annual net income of $1m for 5 years. Project 2 involves an outlay of $10m but gets no income until year 5. year project 1 project 2 0 -2.5 -10 1 1 0 2 1 0 3 1 0 4 1 0 5 1 15 [a]. Use the payback method to decide which is the most attractive project. [b] What is the accounting rate of return for project 1? Write your answer as a percent using the percent symbol. [c]. What is the accounting rate of return for project 2? Write your answer as a percent using the percent symbol. [d] Decide which is the most attractive project using the accounting rate of return method.