Question 1: Salalalh Methanol company management is considering three competinginvestment Projects A, B & CYearInitial Investment1234Assume a discount Rate of 5.45 %Project AProject B120004150Project C120005225120001200310038004600526073609460825092759300Use the information above and help the management in choosing the most desirableProject using Payback period, Discounted payback Net Present value andProfitability Index. Out of the four methods which is considered to be the mostdesirable. Explain

Payback (period) method is the exact amount of time required for a firm to recover its initial…

Answered: Question 1: Salalalh Methanol company…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question 1: Salalalh Methanol company management is considering three competing investment Projects A, B & C Year Initial Investment Project A Project B 12000 Project C 12000 5225 12000 1200 3100 4150 2 5260 8250 3 4 Assume a discount Rate of 5.45 % 3800 4600 7360 9460 9275 9300 Use the information above and help the management in choosing the most desirable Project using Payback period

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Question 1: Salalalh Methanol company management is considering three competing investment Projects A, B & C Year Initial Investment 1 2 3 4 Assume a discount Rate of 5.45 % Project A Project B Project C 12000 12000 12000 1200 5225 3100 8250 3800 9275 4600 9300 4150 5260 7360 9460