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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 136,000 $ 170,000 $ 102,000 $

Perkins Corporation is considering several investment proposals, as shown below:

Investment Proposal
A B C D
Investment required $ 136,000 $ 170,000 $ 102,000 $ 127,500
Present value of future net cash flows $ 163,200 $ 255,000 $ 142,800 $ 288,000

If the profitability index is used, the ranking of the projects from most to least profitable would be:

Multiple Choice

A, C, B, D

B, D, A, C

B, D, C, A

D, B, C, A

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