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(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects: Projects Apple Orange Grape Initial investment $46,000 $75,000 $95,000 Present value of cash flows $49,850 $80,250 $102,500 Which of the choices below ranks the projects according to the profitability index, from most profitable to least profitable? Group of answer choices Orange, Grape, Apple Apple, Orange, Grape Grape, Orange, Apple Orange, Apple, Grape Apple, Grape, Orange

(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects: Projects Apple Orange Grape Initial investment $46,000 $75,000 $95,000 Present value of cash flows $49,850 $80,250 $102,500 Which of the choices below ranks the projects according to the profitability index, from most profitable to least profitable? Group of answer choices Orange, Grape, Apple Apple, Orange, Grape Grape, Orange, Apple Orange, Apple, Grape Apple, Grape, Orange

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects:

Projects

Apple 

Orange 

Grape 

Initial investment 

$46,000  

$75,000  

$95,000  

Present value of cash flows 

$49,850  

$80,250  

$102,500  


                                                                           
Which of the choices below ranks the projects according to the profitability index, from most profitable to least profitable?

Group of answer choices

Orange, Grape, Apple

Apple, Orange, Grape

Grape, Orange, Apple

Orange, Apple, Grape

Apple, Grape, Orange

 

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