Question
Strong, Inc. considers the following independent research projects. Project A Project B Project C Present value of future cash flows $300,000 $600,000 $800,000 Initial investment
Strong, Inc. considers the following independent research projects.
|
| Project A | Project B | Project C |
| Present value of future cash flows | $300,000 | $600,000 | $800,000 |
| Initial investment | 200,000 | 300,000 | 500,000 |
| Net present value | $100,000 | $300,000 | $300,000 |
| Profitability index | ? | ? | ? |
- Calculate the profitability index of these three projects.
- Prioritize these three projects.
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The Internal Auditing Pocket Guide
Authors: J. P. Russell
1st Edition
0873895606, 978-0873895606
