Kingson Inc. has limited funds available for investment and must ration the funds among five competing projects. Selected information on the five projects follows:
tableProjecttableInvestmentRequiredtableNetPresentValuetableLife oftheProjectyearsA$$BCDE
The net present values above have been computed using a discount rate. The company wants your assistance in determining which project to accept first, which to accept second, and so on
Required:
Compute the profitability index for each project. Round your answers to decimal places.
tableProjecttableProfitabilityIndexABCDE
In order of preference, rank the five projects in terms of a net present value, b profitability index.
tableNet Present Value,Profitability IndexFirst preference,,Second preference,,Third preference,,Fourth preference,,Fifth preference,,
This part of the question is not part of your Connect assignment.
