Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal c
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal c $ (90,000) 5 (100,000) $70,000) 126,000 138.000 105,000 5 36,000 $ 38,000 $ 35,000 5 years 7 years 6 years $ 120,000) 160.000 $40.000 yan Required: 1. Compute the profitability Index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Answer is complete but not entirely correct. Investment Profitability Rank Proposal Index Preference A 033 Second B 038 Third 0.50 First D 0.33 Fourth
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started