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Project Investment Required Present Value of Life of Internal the Cash Inflows Project (years) Rate of Return A B $ 150,000 $136,000 $ 264,323 57
Project Investment Required Present Value of Life of Internal the Cash Inflows Project (years) Rate of Return A B $ 150,000 $136,000 $ 264,323 57 14 $ 237,000 12 194 O $ 100,000 $ 195,035 18A D $ 165,000 $273,136 17 18 1 CHECK my worn 7 3 The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. (Round your answers to 2 decimal places.) Project Profitability Index Required 2 Y Freannt the Life of Internal Investment) Project Required Value of Cash Inflow Project Rate (years) of Return A B $ 150,000 $136,000 $264,323 7 148 $ 237,000 12 198 C D $ 100,000 $165,000 $ 195,035 7 189 5 273,136 178 The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 201 In order of preference, rank me four projects in terms of net present value, profitability index, and internal rate of return Not Present Value Profitability Index Intenjal Rate of Retum First preference Second preference Third preference Fourth preverence
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