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The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project 1 Project 2 Project 3 Investment required $ 82,400
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):
Project 1
Project 2
Project 3
Investment required
$
82,400
$
125,900
$
235,500
Discounted value of cash inflows
$
90,064
$
145,084
$
258,175
The only cash outflows are the initial investments in the projects.
Required:
Rank the investment projects using the project profitability index.
Rank 1
project
Rank 2
project
Rank 3
project
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