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Exercise 8-5 Preference Ranking [LO8-5] Information on four investment proposals is given below Investment Proposal Investment required Present value of cash inflows Net present value
Exercise 8-5 Preference Ranking [LO8-5] Information on four investment proposals is given below Investment Proposal Investment required Present value of cash inflows Net present value Life of the project $ (150,000) $ (200,000) $ (180,000) $ (2,600,000) 274,1003,470,500 S 61,500 75,600 94,100 870,500 6 years 211,500 275,600 5 years 7 years 6 years Required 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) Project Investment Proposal Profitability Index 2. Rank the proposals in terms of preference O CABD O DCBA O ABCD O BCA D
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