16. Calculate the Payback, ARR, NPV for each of the following projects. Given what you know about the advantages of each
Posted: Mon Nov 15, 2021 5:16 pm
16. Calculate the Payback, ARR, NPV for each of the following projects. Given what you know about the advantages of each technique, which project would you choose if only one could be chosen? Assume that the cost of capital is 7% for each project. YEAR iPad iPhone 0 -34,000 -12,500 1 17,000 300 24,600 9,500 3 3,600 4,000 ARR = Average after-tax profit Initial Outlay Free Cash Flow, NPV = Σ (1 + WACC)