Information on four investment proposals is given below: Investment required Present value of cash inflows...
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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A BCD A $ (240,000) 337,300 $ 97,300 Rank Preference 5 years Investment Proposal Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. B $ (105,000) 144,900 $ 39,900 7 years C $ (73,500) 110,250 $ 36,750 6 years $ (126,000) 168,000 $ 42,000 6 years
Information on four investment proposals is given below: Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference
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