Question
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project Q Project R Project S Investment required $ 28,400
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):
| Project Q | Project R | Project S | |||||||
| Investment required | $ | 28,400 | $ | 64,400 | $ | 108,000 | |||
| Present value of cash inflows | $ | 30,124 | $ | 73,744 | $ | 119,200 | |||
The only cash outflows are the initial investments in the projects.
Required:
Rank the investment projects using the project profitability index.
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The Operational Auditing Handbook Auditing Business Processes
Authors: Andrew Chambers, Graham Rand
1st Edition
0471970603, 978-0471970606
