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5 Information on four investment proposals is given below: 1.5 points eBook Hint A B Investment required Present value of cash inflows $ (90,000)
5 Information on four investment proposals is given below: 1.5 points eBook Hint A B Investment required Present value of cash inflows $ (90,000) 126,000 $ (100,000) 138,000 Investment Proposal C $ (70,000) 105,000 Net present value $ 36,000 $ 38,000 $ 35,000 Life of the project 5 years 7 years 6 years Required: D $ (120,000) 160,000 $ 40,000 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference Print A B C References D 6 years Check my work
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