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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal A
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal A B D. $ (900,000) $ (170,000) $ (90,000) $ (1,430,000) 1,263,600 233,400 136,500 1,908,300 $ 363,600 $ 63,400 $ 46,500 $ 478,300 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. Investment Profitability Project Rank Proposal Preference Index
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