Information about four investment proposals is summarized here: Net Present Value Investment Proposal Required $ 50,000 60,000 30,000 45,000 $ 30,000 24,000 15,000 9,000 1. 2. 4 Required: Calculate the present value ratio of each proposal. (Round your answers to 1 decimal place.) Proposal Present Value Ratio 1 2 3 4 Indicate which proposal is the most desirable investment. |is most desirable because its profitability index is the highest.
Information about four investment proposals is summarized here: Net Present Value Investment Proposal Required $ 50,000 60,000 30,000 45,000 $ 30,000 24,000 15,000 9,000 1. 2. 4 Required: Calculate the present value ratio of each proposal. (Round your answers to 1 decimal place.) Proposal Present Value Ratio 1 2 3 4 Indicate which proposal is the most desirable investment. |is most desirable because its profitability index is the highest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![### Investment Proposal Analysis
#### Information Summary
Four investment proposals are presented with the following details:
| Proposal | Investment Required | Net Present Value |
|----------|---------------------|-------------------|
| 1 | $50,000 | $30,000 |
| 2 | $60,000 | $24,000 |
| 3 | $30,000 | $15,000 |
| 4 | $45,000 | $9,000 |
#### Task
You are required to calculate the present value ratio of each proposal. Please round your answers to one decimal place.
| Proposal | Present Value Ratio |
|----------|---------------------|
| 1 | |
| 2 | |
| 3 | |
| 4 | |
#### Decision
Determine which proposal is the most desirable investment. The proposal with the highest profitability index should be considered the most desirable.
| [Blank] | is most desirable because its profitability index is the highest. |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F354988b1-49b5-4361-999f-1aaef20d6b01%2Fef357e80-a91f-4ce5-b2d2-503df7071575%2Fxzpnev_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Investment Proposal Analysis
#### Information Summary
Four investment proposals are presented with the following details:
| Proposal | Investment Required | Net Present Value |
|----------|---------------------|-------------------|
| 1 | $50,000 | $30,000 |
| 2 | $60,000 | $24,000 |
| 3 | $30,000 | $15,000 |
| 4 | $45,000 | $9,000 |
#### Task
You are required to calculate the present value ratio of each proposal. Please round your answers to one decimal place.
| Proposal | Present Value Ratio |
|----------|---------------------|
| 1 | |
| 2 | |
| 3 | |
| 4 | |
#### Decision
Determine which proposal is the most desirable investment. The proposal with the highest profitability index should be considered the most desirable.
| [Blank] | is most desirable because its profitability index is the highest. |
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