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Information on four investment proposals is given below: D Investment required Present value of cash inflows Net present value Life of the project Investment Proposal
Information on four investment proposals is given below: D Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B C $ (790,000) $ (120,000) $ (120,000) $ (1,820,000) 1,121,300 168,300 182,000 2,427,200 $ 331,300 $ 48,300 $ 62,000 $ 607,200 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.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Index Rank Preference
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