A company is considering the following three investment proposals:

A). Investment required: OMR 80,000, present value of future cash inflows: OMR 96,000

B). Investment required: OMR 75,000, present value of future cash inflows: OMR 120,000

C). Investment required: OMR 100,000, present value of future cash inflows: OMR 150,000

How would you rank the above investment proposals using profitability index method?

a-B, C, A

b-C, A, B

c-B, A, C

d-A, B, C

A company is considering three investment proposals: A) Initial investment: OMR 80,000, Profitability index: 1.2, B) Initial investment: 75,000, Profitability index: 1.6 and C) Initial investment OMR 100,000, Profitability index: 1.5. How would you rank the above investment proposals using PI?

a- A, C, B

b-C, A, B

c-B, A, C

d-B, C, A