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The Following Values Have Been Computed for Various Independent Projects

Question 69

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The following values have been computed for various independent projects which have a required payback period of 3 years, a required discount rate of 14.5 percent, and a required accounting
Return of 11 percent. Which one of these values indicates an accept decision?


A) Net present value of ($1,200) .
B) Accounting rate of return of 10 percent.
C) Profitability index of 1.02.
D) Internal rate of return of 13.6 percent.
E) Payback period of 3.2 years.

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