You have been asked to evaluate the following 2 projects using only profitability models. Project Blue Interest Rate = 1% Inflation - 1% Fixed Investment - $450,000 Annual Cash Inflow = $250,000 Avg. Annual Profit = $80,000 Project Green interest Rate = 24 Inflation - 2% Fixed Investment - $600,000 Annual Cash Inflow = $300,000 Avg, Annual Profit - $90,000 years The Payback Period (PP) for project Blue is ______ years
The Payback Period (PP) for project Green is ____years For the following answers use two decimals after the comma and round if necessary. te...0.12555 will be 0.13 and not 13.00%) The Average Rate of Return (ARR) for project Blue is ______
The Average Rate of Return (ARR) for project Green is_____ if you were making a decision based purely on Average Rate of Return (ARR), you would select the project If you were making a decision based purely on Payback Perlod (PP) you would select the project______