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Present the Life of Internal Investment Value of Project Rate Project Required Cash Inflows (years) of Return A $ 200,000 $ 309,323 7 15%
Present the Life of Internal Investment Value of Project Rate Project Required Cash Inflows (years) of Return A $ 200,000 $ 309,323 7 15% B $ 116,000 $ 282,000 12 20% C $ 100,000 $ 240,035 7 D $ 160,000 $ 318,136 3 19% 18% The net present values above have been computed using a 10% discount rate. Required: 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Project Profitability Index A 1.55 x B C 2.43X 2.40 1 90
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