please help! PROBLEM II-11A Preference Ranking of Investment Projects [LO2] Austin Company...
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PROBLEM II-11A Preference Ranking of Investment Projects [LO2] Austin Company is investigating four different investment opportunities. Information on the four projects under study is given below: Because the company's required rate of retum is 10%, a 10% discount rate has been used in the above present value computations. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the project profitability index for each investment project. 2. Rank the four projects according to preference, in terms of: a. Net present value. b. Project profitability index. c. Internal rate of retum. 3. Which ranking do you prefer? Why? PROBLEM II-11A Preference Ranking of Investment Projects [LO2] Austin Company is investigating four different investment opportunities. Information on the four projects under study is given below: Because the company's required rate of retum is 10%, a 10% discount rate has been used in the above present value computations. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the project profitability index for each investment project. 2. Rank the four projects according to preference, in terms of: a. Net present value. b. Project profitability index. c. Internal rate of retum. 3. Which ranking do you prefer? Why
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