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Exercise 13-5 Preference Ranking [LO13-5] Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (190,000) $ (180,000)
Exercise 13-5 Preference Ranking [LO13-5]
Information on four investment proposals is given below: |
Investment Proposal | ||||||||
A | B | C | D | |||||
Investment required | $ | (190,000) | $ | (180,000) | $ | (170,000) | $ | (900,000) |
Present value of cash inflows | 267,400 | 249,400 | 259,300 | 1,197,500 | ||||
Net present value | $ | 77,400 | $ | 69,400 | $ | 89,300 | $ | 297,500 |
Life of the project | 5 years | 7 years | 6 years | 6 years | ||||
Required: | |
1. | Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) A= B= C= D= |
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