Question
ACCOUNTING 2 - CLO No. 1 Information on four investment proposals is given below: Investment Proposal A B C D Investment required ($90,000) ($100,000) ($70,000)
| ACCOUNTING 2 - CLO No. 1 | ||||
| Information on four investment proposals is given below: | ||||
| Investment Proposal | ||||
| A | B | C | D | |
| Investment required | ($90,000) | ($100,000) | ($70,000) | ($120,000) |
| Present value of cash inflow | $126,000 | $138,000 | $105,000 | $160,000 |
| Net Present Value | $36,000 | $38,000 | $35,000 | $40,000 |
| Life of Project | 5 years | 7 years | 6 years | 6 years |
1. Compute the Project Present Value Index for each proposal. Round to two decimal points. Example Project A=??, Project B?...
2. Rank the proposals in terms or order of preference.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
