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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 104,000 $ 130,000 $ 78,000 $
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | 104,000 | $ | 130,000 | $ | 78,000 | $ | 97,500 | ||||
| Present value of future net cash flows | 124,800 | $ | 195,000 | $ | 109,200 | $ | 192,000 | |||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
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Strategic Market Management
Authors: David A. Aaker
4th Edition
0471309567, 9780471309567
