Need help with this question solution general accounting Fonics Corporation is considering the following three competing investmentproposals:AyeBeeCeeInitial investment required $62,000 $74,000 $95,000Net present valueInternal rate of return$10,000 $8,000$12,00015%17%18%Using the project profitability index, how would the above investments be ranked(highest to lowest)?A. Aye, Bee, CeeB. Aye, Cee, BeeC. Cee, Bee, AyeD. Bee, Cee, Aye

Step 1: First, calculate the profitability index and then rank the projects According to the…

Answered: Fonics Corporation is considering the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.1P

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Fonics corporation is considering accounting
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Exercise 24-10 (Algo) Net present value, unequal cash flows, and profitability Index LO P3 Following is information on two alternative investment projects being conside return from its investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. y Tiger Company. The company requires a 4% Initial investment Project X1 $ (130,000) Project X2 $ (220,000) Net cash flows in: Year 1 Year 2 Year 3 50,000 97,500 60,500 87,500 85,500 77,500 a. Compute each project's net present value. b. Compute each project's profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's net present value. Note: Round your final answers to the nearest dollar. Net Cash Flowe Present Value of 1 at 4% Present Value of Net Cash…
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For the projects given in the table below to: • Classify the projects into simple investment or non-simple investment. Decide if project A is accepted or rejected based on the IRR criterion, at MARR of 20%. If projects C and D are mutually exclusive projects, determine which project is more economical at MARR of 70%. PROJECT CASH FLOW SR B -4 000 -4 000 -125 000 -125 000 1 8 000 760 30 000 20 000 2 -3 000 4 000 30 000 40 000 3 120 000 130 000 ---- NOTE: The general solution of a quadratic equation (ax? + bX + c 0) is -bt vb2 - 4ac X12 = 2a
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