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 |
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 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: 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...
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: 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 Investment Proposal Α D $(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....
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 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...