Essay
Gavin and Alex,baseball consultants,are in need of a microcomputer network for their staff.They have received three proposals,with related facts as follows:
The company uses straight-line depreciation for all capital assets.
Required:
a.Compute the payback period,net present value,and accrual accounting rate of return with initial investment,for each proposal.Use a required rate of return of 14%.
b.Rank each proposal 1,2,and 3 using each method separately.Which proposal is best? Why?
Correct Answer:

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a.
Payback Method
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Correct Answer:
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Payback Method
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