Question
Chapter 12 Graded Homework i 5 2.08 points Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Saved Skipped
Chapter 12 Graded Homework i 5 2.08 points Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Saved Skipped A Investment required Present value of cash inflows Net present value $ (60,000) 88,000 $ 28,000 $ (70,000) 97,300 $27,300 Investment Proposal $ (40,000) 64,200 $ 24,200 eBook Life of the project 5 years 7 years 6 years Hint Required: Print 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. References Investment Proposal Profitability Rank Index Preference A B C D D $ (990,000) 1,318,700 $ 328,700 6 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started