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Business Accounting questions. Thank you for your help! 53) Information on four investment proposals given below Proposal nvestment Net Present Nim ber Required Value $20,000

Business Accounting questions. Thank you for your help! image text in transcribed
53) Information on four investment proposals given below Proposal nvestment Net Present Nim ber Required Value $20,000 S10,000 $15,000 $6,000 S12,000 S9.600 S18,000 S10,800 4. Rank the proposals in terms of preference according to the project profitability index: A) 1, 4, 3, 2 B) 4, 1, 3,2 C) 3, 4, 1,2 D) 2, 1,4,3 Glovin Associates has been offered a four-year contract to supply the computing requirements for a local bank. 54) Cash flow information Upgrading of equipment in 2 years..$90,000 Salvage value of equipment in 4 yeas... $10,000 wS120,000 The working capital would be released at the end of the contract. Gloven Associates requires a 14% return. What is the net present value of the contract with the local bank? A) $ 16,390 B) $28,230 C) $92,340 D) $132,916 55) If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. A) True B) False

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