Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kingson inc. has limited funds available for inves

Kingson Inc. has limited funds available for investment and must ration the funds among five...

90.2K

Verified Solution

Question

Accounting

Kingson Inc. has limited funds available for investment and must ration the funds among five competing projects. Selected information on the five projects follows:
\table[[Project,\table[[Investment],[Required]],\table[[Net],[Present],[Value]],\table[[Life of],[the],[Project],[(years)]]],[A,$537,000,$133,300,7],[B,445,000,134,500,10],[C,387,000,111,600,7],[D,589,000,121,500,3],[E,462,000,(32,000),6]]
The net present values above have been computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, which to accept second, and so on.
Required:
Compute the profitability index for each project. (Round your answers to 2 decimal places.)
\table[[Project,\table[[Profitability],[Index]]],[A,],[B,],[C,],[D,],[E,]]
In order of preference, rank the five projects in terms of (a) net present value, (b) profitability index.
\table[[,Net Present Value,Profitability Index],[First preference,,],[Second preference,,],[Third preference,,],[Fourth preference,,],[Fifth preference,,]]
This part of the question is not part of your Connect assignment.
image

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

Geometry
1.2K views

Given f x x3 Graph g x 2 x 2 2 A C B D

Statistics
1.2K views

Teenager Mike wants to borrow the car. He can ask either parent for permission to take...

Medical Sciences
1.2K views

Please explain if the following would INCREASE or DECREASE blood pressure and HOW: a. Stress (from this...

Medical Sciences
1.2K views

A post-menopausal woman will have a significant decrease in estrogen levels. Explain why this will lead...

Chemistry
1.2K views

How do you find the lattice energy of ionic compounds?

Mechanical Engineering
1.2K views

Why are the tolerance characteristics categorized as forced fitting and loose can't represent shape and position tolerance?

Civil Engineering
1.2K views

Derive the empirical equations of a) Hazen-Williams and b) Mannings with respect to discharge, Q. Assume...

Physics
1.2K views

62 A constant force F has been applied upon the plank of mass M Upon...

Algebra
1.2K views

Temperature F 70 160 50 40 30 y 2 264x 121 5 20 10 0...

Accounting
1.2K views

12*. Albertville Inc produces leather handbags. Albertville Inc estimates they will use 3,500 square meters...

Accounting
1.2K views

2.) The advantages of the partnership form of business organization compared to corporations include which...

Accounting
1.2K views

er 5 Exercises Sed Help Save & Exh Submit Check my work Required information Use...