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Information on four investment proposals is given below:

Proposal

Investment

Net Present

Number

Required

Value

1

$20,000

$10,000

2

$15,000

$6,000

3

$12,000

$9,600

4

$18,000

$10,800

Rank the proposals in terms of preference according to the project profitability index:

A) 1, 4, 3, 2

B) 4, 1, 3, 2

C) 3, 4, 1, 2

D) 2, 1, 4, 3

Basic Finance, Finance

  • Category:- Basic Finance
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