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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 116,000 $ 145,000 $ 87,000 $
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | 116,000 | $ | 145,000 | $ | 87,000 | $ | 108,750 | ||||
| Present value of future net cash flows | $ | 139,200 | $ | 217,500 | $ | 121,800 | $ | 228,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
A) B, D, C, A
B) B, D, A, C
C) A, C, B, D
D) D, B, C, A
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