The management of Cottingham & Butler Corporation is analyzing the following four investment proposals: Investment...
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The management of Cottingham & Butler Corporation is analyzing the following four investment proposals: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal A B C D $(430,000) $(70,800) $(30,eee) $(2,850,000) 633,500 98,700 124,400 3,804,200 $ 203,500 $ 28,700 $ 44,480 $ 954,200 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability Index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals In terms of preference. Investment Proposal Project Profitability Index Rank Preference A B D
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