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A company is considering following four investment projects A, B, C, D. The cash flows for next four years (C1, C2, C3,C4) and present investment
A company is considering following four investment projects A, B, C, D. The cash flows for next four years (C1, C2, C3,C4) and present investment (Co) for all the four projects are given in the following table Projects Cash flows ($) Co C1 C2 C C4 A -2000 1200 400 400 2000 B -2000 400 400 1200 2000 -2600 200 200 200 3200 D -26000 0 600 3200 Rank the projects according to each of the following methods: NPV, Payback period, and profitability index assuming discount rate of 10%
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