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Homework Answers
Project profitability index = Present value of cash inflow/Amount invested
| Investment proposal | Project profitability index | Rank Preference |
| A | 589700/420000 = 1.40 | 2 |
| B | 276400/200000 = 1.38 | 3 |
| C | 259700/170000 = 1.53 | 1 |
| D | 3203000/2400000 = 1.33 | 4 |
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Exercise 12-5 Preference Ranking (LO12-5] Information on four investment proposals is given below: Investment required Present...
Information on four investment proposals is given below: Investment Proposal Investment required Present value of c...
Information on four investment proposals is given below: Investment Proposal Investment required Present value of cash inflows Net present value Life of the project $(420,000) $(200,000) $(170,000) $(2,400,000) 589,700 276,400 259, 700 3,203,000 $ 169, 700 $ 76,400 $ 89, 700 $ 803,000 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. Project Profitability Index...
Exercise 12-5 Preference Ranking (LO12-5] Information on four investment proposals is given below: Investment required Present...
Exercise 12-5 Preference Ranking (LO12-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal А $(150,000) $ ( 80,000) $ (160,000) $ (910,000) 211,800 110,400 241,600 1,214,500 $ 61,800 $ 30,400 $ 81,600 $ 304,500 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...
Exercise 12-5 Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment Proposal A...
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Exercise 7-5 (Algo) Preference Ranking (L07-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal Α B $(290,000) $(140,000) $(60,000) $ (1,300,000) 421,200 196,500 94,300 1,734,600 $ 131,200 $ 56,500 $ 34,300 $ 434,600 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...
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Exercise 7-5 (Algo) Preference Ranking [LO7-5] Information on four investment proposals is given below: Investment Proposal...
Exercise 7-5 (Algo) Preference Ranking [LO7-5] Information on four investment proposals is given below: Investment Proposal D A B $(390,000) $(30,000) $(40,000) $(600,000) 551,000 Investment required Present value of cash inflows 64,100 41,000 800,000 $161,000 $ 11,000 $24,100 $ 200,000 5 years Net present value Life of the project 6 years 7 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...
compute and rank investment proposals Exercise 7-5 (Algo) Preference Ranking (L07-5) Information on four investment proposals...
compute and rank investment proposals
Exercise 7-5 (Algo) Preference Ranking (L07-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal D $(280,000) S(149,880) (50,000) (780,000) 393,900 192,800 78,100 1,038, 100 $ 113,900 $ 52,800 $ 28,100 $ 258,100 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....
Exercise 13-5 Preference Ranking [LO13-5] Information on four investment proposals is given below: Investment Proposal A...
Exercise 13-5 Preference Ranking [LO13-5] Information on four investment proposals is given below: Investment Proposal A B C 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 $ 78,600 $ 421,100 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to...
Information on four investment proposals is given below: Investment required Present value of cash inflows Net...
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...
EXERCISE 13-4 Preference Ranking [LO4] Information on four investment proposals is given below: Investment Proposal Investment...
EXERCISE 13-4 Preference Ranking [LO4] Information on four investment proposals is given below: Investment Proposal Investment required 135,000 221,000 119,000 250,000 $34,000 50,000 $45,000 S 51,000 6 years 7 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 Proposal Investment required Present value of cash inflows Net present value Life of the project $(420,000) $(200,000) $(170,000) $(2,400,000) 589,700 276,400 259, 700 3,203,000 $ 169, 700 $ 76,400 $ 89, 700 $ 803,000 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. Project Profitability Index...
Exercise 12-5 Preference Ranking (LO12-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal А $(150,000) $ ( 80,000) $ (160,000) $ (910,000) 211,800 110,400 241,600 1,214,500 $ 61,800 $ 30,400 $ 81,600 $ 304,500 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...
Exercise 7-5 (Algo) Preference Ranking (L07-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal Α B $(290,000) $(140,000) $(60,000) $ (1,300,000) 421,200 196,500 94,300 1,734,600 $ 131,200 $ 56,500 $ 34,300 $ 434,600 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...
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.
Exercise 7-5 (Algo) Preference Ranking [LO7-5] Information on four investment proposals is given below: Investment Proposal D A B $(390,000) $(30,000) $(40,000) $(600,000) 551,000 Investment required Present value of cash inflows 64,100 41,000 800,000 $161,000 $ 11,000 $24,100 $ 200,000 5 years Net present value Life of the project 6 years 7 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...
compute and rank investment proposals
Exercise 7-5 (Algo) Preference Ranking (L07-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal D $(280,000) S(149,880) (50,000) (780,000) 393,900 192,800 78,100 1,038, 100 $ 113,900 $ 52,800 $ 28,100 $ 258,100 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....
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...
EXERCISE 13-4 Preference Ranking [LO4] Information on four investment proposals is given below: Investment Proposal Investment required 135,000 221,000 119,000 250,000 $34,000 50,000 $45,000 S 51,000 6 years 7 years 6 years Required: 1. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference.
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