Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 12-5 (algo) preference ranking [lo12-5] i

Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment...

60.1K

Verified Solution

Question

Accounting

Exercise 12-5 (Algo) 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 Profitability Proposal Index A B C D A $ (150,000) 211,800 $ 61,800 5 years Rank Preference Investment Proposal C $ (160,000) 241,600 $ 81,600 6 years B $ (80,000) 110,400 $ 30,400 Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. 7 years D. $ (910,000) 1,214,500 $ 304,500 6 years
image
Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preterence

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students