Question: 15. Red River Corp. is evaluating various capital projects using the net present value method and uses the profitability index to rank projects. The following

15. Red River Corp. is evaluating various capital projects using the net present value method and uses the profitability index to rank projects. The following are the costs and NPV for three projects it is considering.

Project	Cost	NPV
X	$250,000	$28,000
Y	$415,000	$29,000
Z	$270,000	$35,000

Which project would you rank as #1 based on the profitability index?

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