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Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (60,000) $ (130,000) $ (140,000) $ (2,100,000) Present
| Information on four investment proposals is given below: |
| Investment Proposal | ||||||||
| A | B | C | D | |||||
| Investment required | $ | (60,000) | $ | (130,000) | $ | (140,000) | $ | (2,100,000) |
| Present value of cash inflows | 86,600 | 181,100 | 213,900 | 2,803,200 | ||||
| Net present value | $ | 26,600 | $ | 51,100 | $ | 73,900 | $ | 703,200 |
| 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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Mind Mapping Improve Memory Concentration Communication Organization Creativity And Time Management
Authors: Kam Knight
1st Edition
1544840705, 978-1544840703
