Hartley Company is considering the following investment proposals: A B C D Investment required $160,000 $200,000 $120,000
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Question:
Hartley Company is considering the following investment proposals:
A | B | C | D | |
Investment required | $160,000 | $200,000 | $120,000 | $150,000 |
Present value of future net cash flows | 192,000 | 300,000 | 168,000 | 240,000 |
Management should rank the proposals in terms of preference using the profitability index as:
B, D, A, C.
D, B, C, A.
A, C, B, D.
B, D, C, A.
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
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