Homework

profileHelpMem
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%