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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 160,000 $ 200,000 $ 120,000 $
Perkins Corporation is considering several investment proposals, as shown below: | ||||||
Investment Proposal | ||||||
A | B | C | D | |||
Investment required | $ 160,000 | $ 200,000 | $ 120,000 | $ 150,000 | ||
Present value of future net cash flows | $ 192,000 | $ 300,000 | $ 168,000 | $ 360,000 | ||
If the project profitability index is used, the ranking of the projects from most to least profitable would be: | ||||||
Multiple Choice | ||||||
D, B, C, A | ||||||
B, D, C, A | ||||||
B, D, A, C | ||||||
A, C, B, D |
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