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Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposa

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Answer #1

Calculate following

Investment proposal Project profitability index Rank
1 126000/90000 = 1.40 2
2 138000/100000 = 1.38 3
3 105000/70000 = 1.50 1
4 160000/120000 = 1.33 4
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