Question
Problem 4 The management of Philly Corporation is considering the following three investment projects (Ignore income taxes.): Project A Project B Project C Investment required
Problem 4
The management of Philly Corporation is considering the following three investment projects (Ignore income taxes.):
| Project A | Project B | Project C | ||||||||||
| Investment required | $ | 16,000 | $ | 53,500 | $ | 94,000 | ||||||
| Present value of cash inflows | $ | 20,480 | $ | 63,980 | $ | 103,620 | ||||||
The only cash outflows are the initial investments in the projects.
Required:
Rank the investment projects using the project profitability index.
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Farmers Irs Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304134237, 978-1304134233
