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Information on four investment proposals is given below: Investment Proposal $ (120,000) $ (180,000) $ (30,000) $ (1,560,000) $ 52,000 70,000 $ 18,600 $ 521,000
Information on four investment proposals is given below: Investment Proposal $ (120,000) $ (180,000) $ (30,000) $ (1,560,000) $ 52,000 70,000 $ 18,600 $ 521,000 Investment required Present value of cash inflows Net present value Life of the project 172,000 250,000 48,600 2,081,000 7 years 6 years 5 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 Project Investment Profitability Rank Preference Proposal Index First
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