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Bookmark Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (300,000 ) $ (140,000 ) $ (100,000
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Information on four investment proposals is given below:
Investment Proposal | ||||||||||||||||
A | B | C | D | |||||||||||||
Investment required | $ | (300,000 | ) | $ | (140,000 | ) | $ | (100,000 | ) | $ | (1,500,000 | ) | ||||
Present value of cash inflows | 424,800 | 191,700 | 151,100 | 2,001,700 | ||||||||||||
Net present value | $ | 124,800 | $ | 51,700 | $ | 51,100 | $ | 501,700 | ||||||||
Life of the project | 5 years | 7 years | 6 years | 6 years | ||||||||||||
Required:
1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.)
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