Question: Homework #10 He Sweh Exercise 14-5 (Algo) Preference Ranking (LO14-5) 18 Information on four investment proposals is given below 06 points Toped Testant Proposal Investment

 Homework #10 He Sweh Exercise 14-5 (Algo) Preference Ranking (LO14-5) 18

Homework #10 He Sweh Exercise 14-5 (Algo) Preference Ranking (LO14-5) 18 Information on four investment proposals is given below 06 points Toped Testant Proposal Investment required 5 (420,000) $ 1200,000) $170,000) $2,400,001 Present value of cash inflows 589200 276,400 259,700 2,203,00 Net present value 36 S100 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the profitability index for each investment proposal (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference, Rank Preference References Investment Profitability Proposal index A B C D

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