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Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 152,000 $ 190,000 $ 114,000 $
Perkins Corporation is considering several investment proposals, as shown below:
Investment Proposal | ||||||||||||
A | B | C | D | |||||||||
Investment required | $ | 152,000 | $ | 190,000 | $ | 114,000 | $ | 142,500 | ||||
Present value of future net cash flows | $ | 182,400 | $ | 285,000 | $ | 159,600 | $ | 336,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Multiple Choice
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D, B, C, A
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B, D, C, A
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B, D, A, C
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A, C, B, D
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