Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A C Investment required $124,000 $155,000 $ 93,000 $116,250 $148,800 $232,500 $130,200 $252,000 Present value of future net cash flows If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A C Investment required $124,000 $155,000 $ 93,000 $116,250 $148,800 $232,500 $130,200 $252,000 Present value of future net cash flows If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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12q-9

Transcribed Image Text:Perkins Corporation is considering several investment proposals, as shown below:
Investment Proposal
Investment required
$124,000 $155,000 $ 93,000 $116,250
$148,800 $232,500 $130,200 $252,000
Present value of future net cash flows
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Multiple Choice
D. B, C, A
В. D. C, A
B, D, A, C
А, С, В. D
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