Hentgen and Ferraro,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.Ignore income taxes.
Required:
a.Compute the payback period,net present value,and accrual accounting rate of return using average annual income,for each proposal.Use a discount rate of 14 percent.
b.Rank each proposal 1,2,and 3 using each method separately.Which proposal is best? Why?

Question

Hentgen and Ferraro,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.Ignore income taxes.
Required:
a.Compute the payback period,net present value,and accrual accounting rate of return using average annual income,for each proposal.Use a discount rate of 14 percent.
b.Rank each proposal 1,2,and 3 using each method separately.Which proposal is best? Why?

Quizplus · Accepted Answer

The Answer of Hentgen and Ferraro,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.Ignore income taxes.
Required:
a.Compute the payback period,net present value,and accrual accounting rate of return using average annual income,for each proposal.Use a discount rate of 14 percent.
b.Rank each proposal 1,2,and 3 using each method separately.Which proposal is best? Why?

Hentgen and Ferraro,baseball Consultants,are in Need of a Microcomputer Network