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Information on four investment proposals is given below: Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal

Information on four investment proposals is given below:

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.

B C A D

A B C D

C A B D

D C B A

image text in transcribed

Information on four investment proposals is given below: Investment Proposal (150,000) (80,000) $(160,000) (910,000) Investment required 1,214,500 211,800 Present value of cash inflows 110,400 241,600 61,800 30,400 81,600 304,500 Net present value Life of the project 7 years 6 years 6 years 5 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) Project Investment Profitability Proposal Index 2. Rank the proposals in terms of preference OBCAD O ABC D O CAB D D CBA

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