The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.): Project Q Project R Project S Investment required $ 35,600
The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):
| Project Q | Project R | Project S | |||||||
| Investment required | $ | 35,600 | $ | 72,600 | $ | 125,000 | |||
| Present value of cash inflows | $ | 38,116 | $ | 83,256 | $ | 137,730 | |||
The only cash outflows are the initial investments in the projects.
Required:
Rank the investment projects using the project profitability index.
Rank 1:
Rank 2:
Rank 3:
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Authors: John Friedlan
1st Edition
0130193720, 978-0130193728
