Question
Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (94,000 ) $ (104,000 ) $ (74,000 )
Information on four investment proposals is given below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | (94,000 | ) | $ | (104,000 | ) | $ | (74,000 | ) | $ | (126,000 | ) |
| Present value of cash inflows | 141,000 | 153,920 | 100,640 | 194,040 | ||||||||
| Net present value | $ | 47,000 | $ | 49,920 | $ | 26,640 | $ | 68,040 | ||||
| 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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Forensics Audits And Dreaming
Authors: Helgard Petrus - Coetser
1st Edition
1664260250, 978-1664260252
