subject : management accounting for human resources The...

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Accounting

subject : management accounting for human resources
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The management of Revco Products is exploring five different investment opportunities. Information on the five projects under study follows: The company's required rate of return is 7\%; thus, a 7% discount rate has been used in the preceding present value computations. Limited funds are available for investment, and so the company cannot accept all of the avallable projects. Required: 1. Compute the profitability index for each investment project. (Round your answers to 2 decimal places.) 2. Rank the five projects according to preference, in terms of (a) net present value, (b) profitability index

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