Question
Information on four potential projects is given below: Project Investment required A $(350,000) B C $(390,000) $(450,000) Present value of cash inflows 535,000 590,000
Information on four potential projects is given below: Project Investment required A $(350,000) B C $(390,000) $(450,000) Present value of cash inflows 535,000 590,000 Net present value $ 185,000 $ 200,000 670,000 $220,000 D $(480,000) 730,000 $ 250,000 Ignore income taxes. 1. Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Required: Project Project Profitability Index A BCD 2. Rank the projects in terms of preference.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
