Question: how to find discount factor hapter 14 Homework Assignment 6 Save 5 Exercise 14-5 (Algo) Preference Ranking (LO14-5) 35 oints Information on four investment proposals
how to find discount factor hapter 14 Homework Assignment 6 Save 5 Exercise 14-5 (Algo) Preference Ranking (LO14-5) 35 oints Information on four investment proposals is given below: Investment Proposal B C Investment required $(60,000) $(130,000) $(140,000) $(2,100,000) Present value of cash inflows 86,600 181,100 213,900 2,803,200 Net present value $ 26,600 $ 51,100 $ 73,900 $ 703,200 Life of the project 5 years 7 years 6 years 6 years D eBook Hint 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. Print Investment Profitability Proposal Index Rank Preference References B C D
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