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

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Answer #1

Project profitability index = Net present value /Investment required

PPI Rank
A (97,300/240,000) = 0.41 2
B (15,000/42,000) = 0.36 3
C (91,800/180,000) = 0.51 1
D (636,700/1,900,000) = 0.34 4
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