Question
A company is considering the following investment projects. (Ignore income taxes): Project Q Project R Project S Investment required $ 86,000 $ 130,000 $ 244,000
A company is considering the following investment projects. (Ignore income taxes):
| Project Q | Project R | Project S | |||||||
| Investment required | $ | 86,000 | $ | 130,000 | $ | 244,000 | |||
| Present value of cash inflows | $ | 94,060 | $ | 149,840 | $ | 267,440 | |||
The only cash outflows are the initial investments in the projects.
Rank the investment projects using the project profitability index.
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Financial Statement Analysis And Earnings Forecasting In Accounting
Authors: Steven J Monahan
1st Edition
1680834509, 978-1680834505
