1)

Senseman Company has three potential projects from which to choose. Selected information on each of the three projects follows:

Investment required:

Project A-$42,000

Project B-$56,000

Project C-$53,700

Net present value of project:

Project A-$45,700

Project B-$75400

Project C-$70200

Using the profitability index, rank the projects from most profitable to least profitable.

A) B,C,A

B) B,A,C

C) C,B,A

D) A,B,C