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Information on four investment proposals is given below: Investment Proposal A B C Investment required Present value of cash inflows Net present value Life
Information on four investment proposals is given below: Investment Proposal A B C Investment required Present value of cash inflows Net present value Life of the project $ (190,000) 267,400 $ 77,400 5 years $ (180,000) 249,400 $ (170,000) 259,300 $ 69,400 7 years $ 89,300 6 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) D $ (900,000) 1,197,500 $ 297,500 6 years
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Step: 1
To compute the profitability index for each investment proposal we use the formula textProfitabil...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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