Question
Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (280,000 ) $ (140,000 ) $ (50,000 )
Information on four investment proposals is given below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | (280,000 | ) | $ | (140,000 | ) | $ | (50,000 | ) | $ | (780,000 | ) |
| Present value of cash inflows | 393,900 | 192,800 | 78,100 | 1,038,100 | ||||||||
| Net present value | $ | 113,900 | $ | 52,800 | $ | 28,100 | $ | 258,100 | ||||
| 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.)
2. Rank the proposals in terms of preference.
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How To Write A Marketing Plan Carry Out A Marketing Audit Establish Objectives And Strategies Create An Effective Plan
Authors: John Westwood
3rd Edition
0749461713, 978-0749461713
