A number of individual and/or a combination of projects are under consideration. Evaluate the attractiveness of each or combination of projects by ranking from most to least attractive in terms of:

1. Net present value

2. Profitability index

3. Which method is the best way in evaluating potential projects? Why do you say so?

PROJECT INVESTMENT PRES. VALUE OF REQUIRED FUTURE CASH FLOWS -

1 P200,000 P290,000

2 115,000 185,000

3 270,000 400,000

1,2 315,000 475,000

1,3 440,000 690,000

2,3 385,000 620,000

1,2,3 680,000 910,000