Question: Information on four potential projects is given below: Projects A B C D Investment required $(350,000) $(390,000) $(450,000) $(480,000) Present value of cash inflows 535,000

Information on four potential projects is given below: Projects A B C D Investment required $(350,000) $(390,000) $(450,000) $(480,000) Present value of cash inflows 535,000 590,000 670,000 730,000 Net present value $185,000 200,000 $220,000 $250,000 Ignore income taxes Required: 1. Compute the project profitability index for each project. 2. Rank the projects in terms of preference

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