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problem: Information on 4 investment proposals is given below:

Proposal

Investment

Net Present

Number

Required

Value

1

$  8,000

$ 3,200

2

$ 12,000

$ 3,600

3

$ 10,000

$ 2,500

4

$  4,000

$ 2,000

Rank the proposals in terms of preference using the project profitability index:

[A] 2, 1, 3, 4
[B] 4, 1, 2, 3
[C] 3, 2, 1, 4
[D] 2, 3, 1, 4

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918476

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