Question

a). A company is considering the following investment projects.
Cash flows in Kes

Project Initial Outlay C1 C2
A (10,000) 10,000
B (10,000) 7,500 7,500 12,000
C (10,000) 2,000 4,000 3000
D (10,000) 10,000 3,000 3,000

Required:

Rank the projects according to:
i. Payback period (1 Marks)
ii. Accounting rate of return (1 Marks)
iii. Internal Rate of Return (2 Marks)
iv. Profitability Index (1 Marks)
v .Net present value (2 Marks)

Use 10% where cost of capital is not given especially in cases of NPV and IRR.