Information on four investment proposals is given below:
Investment Proposal
| A |
B |
C |
D |
| Investment required |
($90,000) |
($100,000) |
($70,000) |
($120,000) |
| Present value of cash inflow |
$126,000 |
$138,000 |
$105,000 |
$160,000 |
| Net Present Value |
$36,000 |
$38,000 |
$35,000 |
$40,000 |
| Life of Project |
5 years |
7 years |
6 years |
6 years |
1. Compute the Project Present Value Index for each proposal. Round to two decimal points. Example Project A=??, Project B?...
2. Rank the proposals in terms or order of preference.