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Information on four investment proposals is given below: Proposal Investment...

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Accounting

Information on four investment proposals is given below:

Proposal Investment Net Present Value
1 $ 8,000 $ 3,200
2 $ 12,000 $ 3,600
3 $ 10,000 $ 2,500
4 $ 4,000 $ 2,000

Rank the proposals in terms of preference from highest to lowest according to the profitability index:

Multiple Choice

3, 2, 1, 4

2, 3, 1, 4

2, 1, 3, 4

4, 1, 2, 3

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Journal entry worksheet