A pharmaceutical company developed four investment plans. The initial investment and the corresponding annual cash flows of the four investment plans for consecutive 5 years are shown in the following...

A pharmaceutical company developed four investment plans. The initial investment and the corresponding annual cash flows of the four investment plans for consecutive 5years are shown in the following Table Q1.

Identify the best project and decide the ranking based on the following profitability methods.

a) Average rate of return.

b) Payback period.

c) Net Present value with discounting rate at 8%

d) Benefit to cost ratio with discounting rate at 11%

e) Internal rate of return for range of suitable discounting rate