Question 32

The management of Solar Corporation is considering the following three investment projects (Ignore income taxes.):

Project L Project M Project N Investment required $ 37,000 $ 55,000 $ 82,000 Present value of cash inflows 38,480 $ 62,150 $ 90,200

Rank the projects according to the profitability index, from most profitable to least profitable.

M, N, L L, N, M N, L, M N, M, L