Question
Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 148,000 $ 185,000 $ 111,000 $
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||
|---|---|---|---|---|
| A | B | C | D | |
| Investment required | $ 148,000 | $ 185,000 | $ 111,000 | $ 138,750 |
| Present value of future net cash flows | $ 177,600 | $ 277,500 | $ 155,400 | $ 324,000 |
If the profitability index is used, the ranking of the projects from most to least profitable would be:
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
