The Daim Company Ltd.

is considering following projects:

A B C D
Investment 22,000 30,000 30,000 20,000
Cash inflow every year 8,000 7,000 7,000 3,000
# years 5 7 10 6
Discount rate, % 0.15 0.15 0.15 0.15

 Compute the PI and NPV of each project and rank the investments from best to worst under each
method. What factors are responsible for the differences in rankings between the two approaches?
 Compare the projects on the basis of EAC and matching principle and NPV infinity