70.2K
Verified Solution
Link Copied!
Information on four investment proposals is given below:
Investment required...... A: $(90,000) B: $(100,000) C: $(70,000) D: (120,000)
Present value of cash inflows....... A: 126,000 B: 138,000 C: 105,000 D: 160,000
Net present value....... A: $36,000 B: $38,000 C: $35,000 D: $40,000
Life of the project....... A: 5 years B: 7 years C: 6 years D: 6 years
Required (show all work process):
1. Compute the project profitability index for each investment proposal.
2. Rank the proposals in terms of perference.
Answer & Explanation
Solved by verified expert
