Question
Salk Company is considering three investment projects: A, B, and C. The only cash outflows for each of the projects is the initial investment, which
Salk Company is considering three investment projects: A, B, and C. The only cash outflows for each of the projects is the initial investment, which is presented below for each project, along with the present value of the projects cash inflows.
| Project A | Project B | Project C | |
| Initial investment | $80,000 | $69,000 | $50,000 |
| Present value of cash inflows | $93,000 | $95,000 | $79,000 |
Rank the projects from most profitable to least profitable using the profitability index.
| a. | C, A, B | |
| b. | C, B, A | |
| c. | A, B, C | |
| d. | B, A, C |
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The Internet Supply Chain Impact On Accounting And Logistics
Authors: D. Chorafas
5th Edition
0333949633, 9780333949634
