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ter 12 Homework 3 eBook Hint ferences Ac raw Information on four investment proposals is given below. Investment required Present value of cash inflows
ter 12 Homework 3 eBook Hint ferences Ac raw Information on four investment proposals is given below. Investment required Present value of cash inflows Net present value Life of the project Required: Saved B Investment Proposal $ (120,000) 168,300 $ (120,000) 182,000 $ (790,000) 1,121,300 $ 331,300 $ 48,300 5 years 7 years $ 62,000 6 years D $ (1,820,000) 2,427,200 $ 607,200 6 years 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference: A B D ype here to search fi < Prev 3 of 8 Next > 78F
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