Question 1: Salalalh Methanol company management is considering three competing investment Projects A, B &C Year Initial Investment 1 2 Project A 12000 1200 3100 Project B 12000 4150 5260 7360 9460 Project C 12000 5225 8250 9275 9300 3800 4600 Assume a discount Rate of 5.45 % 4 Use the information above and help the management in choosing the most desirable Project using Payback period

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
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Question 1: Salalalh Methanol company management is considering three competing
investment Projects A, B & C
Year
Initial Investment
Project A Project B
12000
Project C
12000
5225
12000
1200
3100
4150
2
5260
8250
3
4
Assume a discount Rate of 5.45 %
3800
4600
7360
9460
9275
9300
Use the information above and help the management in choosing the most desirable
Project using Payback period
Transcribed Image Text:Question 1: Salalalh Methanol company management is considering three competing investment Projects A, B & C Year Initial Investment Project A Project B 12000 Project C 12000 5225 12000 1200 3100 4150 2 5260 8250 3 4 Assume a discount Rate of 5.45 % 3800 4600 7360 9460 9275 9300 Use the information above and help the management in choosing the most desirable Project using Payback period
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