Information on four investment proposals is given below: Investment Proposal C $ (70,000) 105,000 $ 35,000 6 years D $ (120,000) 160,000 $ 40,000 6 years A B Investment required Net present value. Present value of cash inflows $ (90,000) 126,000 $ 36,000 $ (100,000) 138,000 $ 38,000 Life of the project 5 years 7 years Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference A B C D

Information on four investment proposals is given below:     Investment Proposal A B C D Investment required $ (330,000)   $ (40,000)   $ (190,000)   $ (2,380,000)   Present value of cash inflows 480,000   56,500   286,700   3,178,500   Net present value $ 150,000   $ 16,500   $ 96,700   $ 798,500   Life of the project 5 years 7 years 6 years 6 years 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.

Information on four investment proposals is provided below:      Investment Proposal     A     B     C     D   Investment required $ (45,000 )   $ (50,000 )   $ (35,000 )   $ (60,000 ) Present value of cash inflows   65,000       45,000       53,000       80,000   Net present value $ 20,000     $ (5,000 )   $ 18,000     $ 20,000   Life of the project   5 years       7 years       6 years       8 years       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.   multiple choice D C B A B C A D C A D B A B C D

nformation on four investment proposals is given below: Investment Proposal A B C D Investment required $ (900,000) $ (170,000) $ (90,000) $ (1,430,000) Present value of cash inflows 1,263,600 233,400 136,500 1,908,300 Net present value $ 363,600 $ 63,400 $ 46,500 $ 478,300 Life of the project 5 years 7 years 6 years 6 years 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.

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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Index Proposal A B с D A $ (60,000) 88,000 $ 28,000 5 years 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. Rank Preference Investment Proposal с $ (40,000) 64,200 $ 24, 200 B $ (70,000) 97,300 $ 27,300 7 years 6 years D $ (990,000) 1,318,700 $ 328,700 6

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The management of Riker Inc. is exploring five different investment opportunities. Information on the five projects under study follow Project Number Investment required Present value of cash inflows at a 10% discount rate Net present value Life of the project Project 1 2 3 4 5 Profitability Index 1 2 3 $(390,000) $(330,000) $(350,000) 478,490 396,950 $ 88,490 $ 66,950 6 years 3 years First preference Second preference 433,190 $ (83,190) 5 years The company's required rate of return is 10%; thus, a 10% 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 available projects. Third preference Fourth preference Fifth preference 4 $(330,000) Required: 1. Compute the profitability Index for each investment project. (Round your answers to 2 decimal places.) 300, 100 $ 29,900 12 years 5 $(480,000) 562,860 $82,860 6 years 2. Rank the five projects according to preference, in terms of (a)…