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Peach Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 112,000 $ 140,000 $ 84,000 $
Peach Corporation is considering several investment proposals, as shown below:
Investment Proposal | ||||||||||||
A | B | C | D | |||||||||
Investment required | $ | 112,000 | $ | 140,000 | $ | 84,000 | $ | 105,000 | ||||
Present value of future net cash flows | $ | 134,400 | $ | 210,000 | $ | 117,600 | $ | 216,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
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