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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 124,000 $ 155,000 $ 93,000 $
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | 124,000 | $ | 155,000 | $ | 93,000 | $ | 116,250 | ||||
| Present value of future net cash flows | $ | 148,800 | $ | 232,500 | $ | 130,200 | $ | 252,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
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