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S Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability
S Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A B C D A $ (60,000) 86,600 $ 26,600 Rank Preference 5 years Investment Proposal B $ (130,000) 181,100 $ 51,100 7 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. C $ (140,000) 213,900 $ 73,900 6 years D $ (2,100,000) 2,803,200 $ 703,200 6 years
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