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Munson Inc. is comparing several alternative capital budgeting projects as shown below. Projects A B C Initial Investment $150,000 $55,000 $95,000 Present value of cash

Munson Inc. is comparing several alternative capital budgeting projects as shown below.

Projects

A

B

C

Initial Investment

$150,000

$55,000

$95,000

Present value of cash inflows

$200,000

$65,000

$100,000

Using the profitability index, rank the projects, starting with the most attractive. (Points : 5)
A, C, B

A, B, C

C, A, B

C, B, A

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