Question
Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 120,000 $ 150,000 $ 90,000 $
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | 120,000 | $ | 150,000 | $ | 90,000 | $ | 112,500 | ||||
| Present value of future net cash flows | $ | 144,000 | $ | 225,000 | $ | 126,000 | $ | 240,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Multiple Choice
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D, B, C, A
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B, D, C, A
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B, D, A, C
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A, C, B, D
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Cost Accounting Foundations And Evolutions
Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn
6th Edition
0324235011, 978-0324235012
