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Exercise 13-5 Preference Ranking [LO13-5] Information on four investment proposals is given below Investment Proposal Investment required $(90,000) s100,000) s(7,00)120,000) Present value of cash 126,000
Exercise 13-5 Preference Ranking [LO13-5] Information on four investment proposals is given below Investment Proposal Investment required $(90,000) s100,000) s(7,00)120,000) Present value of cash 126,000 105,000 138,000 160,000 inflows Net present value $ 36,000 s 38.o00 s 35,000 s $ 40,000 5 years 6 years Life of the project 7 years 6 years Required: 1. Compute the project profitability index for each investment proposal. Round your answers to 2 decimal places.) estment Profitabili 2. Rank the proposals in terms of preference. DCBA CABD ABCD BCAD
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