Tom Alexander has an opportunity to purchase any of the investments shown in the following table: the purchase, price, and the amount of the single cash inflow and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments?

	Price	Single cash inflow	Year of receipt
(i)	$5,000	$10,718	7
(ii)	$150	$1,10	22
(iii)	$950	$3,280	12
(iv)	$250	$12,446	42

Answer rating: 100% (QA)

Since all the investments options have different investment amount hence profitability index method ... View the full answer