Homework Answers
| Profitability index = | present value of Future cash flows/Initial investment | |||||||
| project C | Project D | project E | ||||||
| present value of Future cash flow | 83,916 | 99,876 | 194,565 | |||||
| initital investment | 75,600 | 86,100 | 178,500 | |||||
| profitability index | 1.11 | 1.16 | 1.09 | |||||
| Ranking | 2 | 1 | 3 | |||||
| Answer) | D,C ,E | |||||||
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2.
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2.
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