Information on four investment proposals is given below. Investment Proposal B D Investment required $ (130,000) $ (140,
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Information on four investment proposals is given below. Investment Proposal B D Investment required $ (130,000) $ (140,
Information on four investment proposals is given below. Investment Proposal B D Investment required $ (130,000) $ (140,000) $ (150,000) $ (1,260,000) Present value of cash inflows 185,600 193,800 228,600 1,681, 100 Net present value $ 55,600 $ 53,800 $ 78,608 $ 421,100 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. Investment Profitability Proposal Index Rank Preference A B с D
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