Information on four investment proposals is given below: Investment required Present value of cash inflows Net...
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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value. Life of the project Investment Profitability Proposal Index Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. A B C D A $ (120,000) 172,000 $ 52,000 Rank Preference 5 years Investment Proposal B $ (180,000) 250,000 $ 70,000 7 years C $ (30,000) 48,600 $ 18,600 6 years D $ (1,560,000) 2,081,000 $ 521,000 6 years Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value. Life of the project Investment Profitability Proposal Index Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. A B C D A $ (120,000) 172,000 $ 52,000 Rank Preference 5 years Investment Proposal B $ (180,000) 250,000 $ 70,000 7 years C $ (30,000) 48,600 $ 18,600 6 years D $ (1,560,000) 2,081,000 $ 521,000 6 years
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Related Book For
Managerial Accounting
ISBN: 9780697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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