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es Investment required Present value of cash inflows Net present value Life of the project Required: A $ (90,000) 126,000 $ 36,000 5 years
es Investment required Present value of cash inflows Net present value Life of the project Required: A $ (90,000) 126,000 $ 36,000 5 years 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Rank Proposal Index Preference A B C D B Investment Proposal $ (100,000) 138,000 $ 38,000 7 years C $ (70,000) 105,000 $ 35,000 6 years D $ (120,000) 160,000 $ 40,000 6 years
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