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
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 11P
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9252667-f4c6-4037-a7d7-5499df23761f%2F3a01a69a-cddb-43f2-932d-d552c2814edf%2Fi8yigks_processed.jpeg&w=3840&q=75)
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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