Sampdoria General Company (SGC) is considering a five-year investment which costs $100,000 today. The investment will produce cash flows of $25,000 each year for the first two years, $50,000 a year for each of the remaining three years. (SGC) uses the following criterions in its capital budgeting process:
WACC = 12%
Target Payback Period (PBP) = 2.00 years
Target Discounted Payback Period (DPBP)= 2.50 years
Target Accounting Rate of Return (ARR) =25%
Please use the following capital budgeting techniques to prepare a table to summarize your results and provide a short paragraph comment/interpretation about your findings.
1) Accounting Rate of Return
2) NPV
3 IRR
4) MIRR
5) PI
Show Work