Perkins Corporation is considering several investment proposals, as shown below: $112,000 $134,400 OD, B, C, A O B, D,A, C O A, C, B. D O B, D, C,A B $140,000 $ 210,000 Investment Proposal Investment required Present value of future net cash flows If the profitability index is used, the ranking of the projects from most to least profitable would be: C $ 84,000 $ 117,600 D $ 105,000 $216,000
Perkins Corporation is considering several investment proposals, as shown below: $112,000 $134,400 OD, B, C, A O B, D,A, C O A, C, B. D O B, D, C,A B $140,000 $ 210,000 Investment Proposal Investment required Present value of future net cash flows If the profitability index is used, the ranking of the projects from most to least profitable would be: C $ 84,000 $ 117,600 D $ 105,000 $216,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Perkins Corporation is considering several investment proposals, as shown below:
$112,000
$ 134,400
OD, B, C, A
OB, D, A, C
O A, C, B, D
O B, D, C, A
B
$140,000
$ 210,000
Investment Proposal
с
$ 84,000
$ 117,600
Investment required
Present value of future net cash
flows
If the profitability index is used, the ranking of the projects from most to least profitable would be:
D
$ 105,000
$ 216,000
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