Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: Investment r

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Exercise 14 5 Static Preference Ranking Lo14 5 Information On Four Investment Proposals Is Given Below Investment R 1 (212.6 KiB) Viewed 47 times

Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal A B $ 190,000) $ (100,000) $ (70,000) 126,000 138,000 105,000 $ 36,000 $ 38,000 $ 35,000 5 years 7 years 6 years D $ (120,000) 160,000 $ 40,000 6 years it 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. nces Investment Profitability Proposal Index Rank Preference A A D B с D