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The following particulars are available in respect of three investment proposals: Taking interest rate to be 8% p.a. rank these proposals by using Net present

The following particulars are available in respect of three investment proposals:

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Taking interest rate to be 8% p.a. rank these proposals by using Net present value method and Profitability index method.

Cost(inRs.)Annualsavings(inRs.)Estimatedscrap(inRs.)Life(inyears)ProjectA1,00,00030,00016,00012ProjectB1,20,00032,00020,00010ProjectC1,40,00034,00030,0009

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