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 |
Information on four investment proposals is given below: Investment required Present value of cash inflows Investment...
Information on Tour Investment proposals is given below! Investment Proposal B D Investment required Present value of cash inflows $(90,000) $ (100,000) $ (70,000) $ (120,000) 126,000 138,000 105,000 160,000 $ 36,000 $ 38,000 $ 35,000 $ 40,000 5 years 7 years 6 years 6 years Net present value Life of the project Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment...
Information on four investment proposals is given below: EXERCISE 7-5 Preference Ranking L07-5 the equipment's intangible benefits Investment Proposal A B С D Investment required Present value of cash inflows Net present value $(90,000) $(100,000) $170,000) $(120,000) 126,000 138,000 105,000 160,000 $36,000 $ 38,000 $35,000 $ 40,000 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference.
Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposal A B C D $ (720,000) $ (160,000) $(130,000) $(1,560,000) 1,013,000 221,800 198,900 2,081,400 $ 293,000 $ 61,800 $ 68,900 $ 521,400 5 years 7 years 6 years 6 years Net present value Life of the project Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference....
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 В D $(130,000) $( 140,000) $(150,000) $(1,260,000) 185,600 193,800 228,600 1,681, 100 $ 55,600 $ 53,800 $ 78,600 $ 421,100 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment...
Information on four investment proposals is given below: D Investment required Present value of cash inflows Net present value Life of the project Investment Proposal в $(360,000) $(150,000) $(130,000) $(1,200,000) 506,000 210,300 197,300 1,601,100 $ 146,000 $ 60,300 $ 67,300 $ 401,100 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Project Rank...
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal А $(240,000) $ (42,000) $(180,000) $(1,900,000) 337,300 53,500 271,800 2,536,700 $ 97,300 $ 15,000 $ 91,800 $ 636,700 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability...
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B C D $(60,000) $(130,000) $(140,000) $(2,100,000) 86,600 181,100 213,900 2,803,200 $ 26,600 $ 51,100 $ 73,900 $ 703,200 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Project...
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 C D $(330,000) $(40,000) $(190,000) $ (2,380,000) 480,000 56,500 286,700 3,178,500 $ 150,000 $ 16,500 $ 96,700 $ 798,500 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment...
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 C D $(390,000) $(30,000) $(40,000) $(600,000) 551,000 41,000 64,100 800,000 $ 161,000 $ 11,000 $ 24,100 $ 200,000 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal...
Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal А B с D $ (989,880) $(170,000) $(90,880) $(1,430,000) 1,263,600 233, 4ee 136,500 1,908,300 $363,600 $ 63,400 $ 46,500 $ 478,300 6 years 6 years 5 years 7 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment...