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Bowen Corporation is considering several investment proposals, as shown below: Project A Project B Project Investment $95,000 $120,000 $90,000 required Net present value $25,000 $10,000
Bowen Corporation is considering several investment proposals, as shown below: Project A Project B Project Investment $95,000 $120,000 $90,000 required Net present value $25,000 $10,000 $35,000 Project D $250,000 $50,000 12.4% 13.1% 14.3% 13.7% Internal rate of return PV of future cash flows $120,000 $130,000 $125,000 $300,000 If profitability index is used, the ranking of the projects from most to least profitable would be: OC, D, B, A D, B, C, A OC, A, D, B D, C, A, B None of the other answers are correct
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