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erkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 140,000 $ 175,000 $ 105,000 $
erkins Corporation is considering several investment proposals, as shown below:
Investment Proposal | ||||||||||||
A | B | C | D | |||||||||
Investment required | $ | 140,000 | $ | 175,000 | $ | 105,000 | $ | 131,250 | ||||
Present value of future net cash flows | $ | 168,000 | $ | 262,500 | $ | 147,000 | $ | 300,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
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