## Description

Capital Renaissance .gif” alt=”http://cvg.cengagenow.com/ilrn/books/wrfm12h/images/ch25/wrfm12h_ch25_pr25_6a.gif”> The
for each of the four proposals.
depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. If required, round your answers to one decimal place.
summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal place.
further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above. Round to the nearest dollar.
for each of the proposals in part (4). If required, round your answers to two decimal places.
attractive to least attractive, based on the present values of net cash flows computed in part (4).
attractive to least attractive, based on the present value indexes computed in part (5).
that although Proposal has the larger net present value, it is not as attractive as Proposal in terms of the amount of present value per dollar invested. Proposal requires the larger investment. Thus, management should use investment resources for Proposal before investing in Proposal , absent any other qualitative considerations that may impact the decision. |

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