PArtVI.docx
Part II: Making Investment Decisions Using NPV, ARR, IRR, and Payback
Investments
|
|
Investment A
|
Investment B
|
|
Required Investment
|
$50,000
|
$150,000
|
|
Annual Cash Flows
|
20,000
|
56,000
|
|
Annual Net Income
|
8,000
|
34,000
|
|
Project Life
|
5 years
|
5 years
|
|
|
|
|
|
Cost of Capital
|
10%
|
10%
|