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The Fairbanks Co. is evaluating the following independent projects. The manager has determined the appropriate discount rate to be 7% for all of the recommended
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The Fairbanks Co. is evaluating the following independent projects. The manager has determined the appropriate discount rate to be 7% for all of the recommended projects. Rank order the projects based on the profitability index.
Year Project A Project B Project C 0 -2,200 -2,800 -3,500 1 300 100 2000 2 800 100 2000 3 900 2000 300 4 1500 2000 300 C,A,B
B,A,C
B,C,A
A,B,C
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