Question
Information on three potential projects is given below: ProjectABCInvestment required$(170,000)$(190,000)$(220,000)Present value of cash inflows229,500294,500330,000Net present value$59,500$104,500$110,000 Required: 1. Compute the project profitability index for each
Information on three potential projects is given below:
ProjectABCInvestment required$(170,000)$(190,000)$(220,000)Present value of cash inflows229,500294,500330,000Net present value$59,500$104,500$110,000
Required:
1.Compute the project profitability index for each project.(Round your answers to 2 decimal places.)
2.Rank the projects in terms of preference.
- A B C
- C B A
- C A B
- B C A
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Managerial Accounting
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
7th edition
1260482936, 978-1260482935
