A company has only $700,000 available for investment during the coming year. It has identified the following
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A company has only $700,000 available for investment during the coming year. It has identified the following four investment opportunities, all of which are divisible, and have the same life.
Calculate the correct rank order for these investments (best first).
Transcribed Image Text:
Investment J SKLM Capital required $ 400,000 250,000 300,000 350,000 Net present value $ 650,000 450,000 480,000 550,000
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To rank these investments we can calculate the profitability index for each investment The ...View the full answer
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