Question
Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (350,000 ) $ (110,000 ) $ (130,000 )
Information on four investment proposals is given below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | (350,000 | ) | $ | (110,000 | ) | $ | (130,000 | ) | $ | (2,250,000 | ) |
| Present value of cash inflows | 491,800 | 152,400 | 199,500 | 3,004,600 | ||||||||
| Net present value | $ | 141,800 | $ | 42,400 | $ | 69,500 | $ | 754,600 | ||||
| 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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Occupational Fraud And Abuse
Authors: Joseph T. Wells
1st Edition
1889277088, 978-1889277080
