Information for two alternative projects involving machinery investments follows:   Project 1 Project 2Initial investment $ (124,000) $ (94,000)Salvage value 0 14,000Annual income 13,640 12,960a. Compute accounting rate of return for each project.

Perit Industries has $180,000 to invest in one of the following two projects:  Project A Project BCost of equipment required $ 180,000   $ 0  Working capital investment required $ 0   $ 180,000  Annual cash inflows $ 32,000   $ 54,000  Salvage value of equipment in six years $ 9,300   $ 0  Life of the project 6 years 6 yearsThe working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%.Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.Required:Compute the net present value of Project A.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Compute the net present value of Project B.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Which investment alternative (if either) would you recommend that the company accept?

Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)   Project X1 Project X2Initial investment $ (96,000) $ (152,000)Net cash flows in:    Year 1 33,000 72,000Year 2 43,500 62,000Year 3 68,500 52,000  a. Compute each project’s net present value.b. Compute each project’s profitability index.

Using the method of your choice, calculate the Net Present Value of the following cash flows. Assume that the required return on this project is 15%  Project AInitial Cost -$ 150  Year 1 $ 175  Year 2 $ 100

2a) A company is considering investing in a new project that requires an initial investment of $50,000. The project is expected to generate cash inflows of $10,000 per year for the next five years. The salvage value of the project at the end of the fifth year is estimated to be $5,000. The company uses straight-line depreciation for all its capital investments. Calculate the Accounting Rate of Return for this project. 2b) Suppose a company is considering a new project that requires an initial investment of $50,000. The company's cost of capital 8%. What is the NPV of the project?

The expected cash flows of three projects are given below. The cost of capital is 10 per cent. (Amount in INR.)Period   Project A Project B   Project C 0 ( 5000) ( 5000) ( 5000)1 900 700 2,0002 900 800 2,0003 900 900 2,0004 900 1000 1,0005 900 1100  6 900 1200  7 900 1300  8 900 1400  9 900 1500  10 900 1600  * CALCULATE the payback period, net present value, internal rate of return and accounting rate of return of each project.*IDENTIFY the rankings of the projects by each of the four methods. Based on the calculations, choose the correct answers of  the below mentioned questions.What is the payback period (years) of Project A, B & Ca.4, 5, 6 Yearsb.5.5, 5.4, 2.5 yearsc.5.6, 5.7, 3.5 Yearsd.4.5, 4.9. 2.5 YearsClear my choice