Information on four investment proposals is given below: Investment Proposal C $ (70,000) 105,000 $ 35,000 6 years D $ (120,000) 160,000 $ 40,000 6 years A B Investment required Net present value. Present value of cash inflows $ (90,000) 126,000 $ 36,000 $ (100,000) 138,000 $ 38,000 Life of the project 5 years 7 years Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference A B C D
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- nformation on four investment proposals is given below: Investment Proposal A B C D Investment required $ (94,000 ) $ (104,000 ) $ (74,000 ) $ (126,000 ) Present value of cash inflows 141,000 153,920 100,640 194,040 Net present value $ 47,000 $ 49,920 $ 26,640 $ 68,040 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Index Rank Preference A ____________ Second B ____________ Third C ____________ Fourth D ____________ FirstInformation on four investment proposals is given below: A B Investment required Present value of cash inflows $ (360,000) 506,000 $ (150,000) 210,300 Investment Proposal с $ (130,000) 197,300 Net present value $ 146,000 $ 60,300 $ 67,300 Life of the project 5 years 7 years 6 years Required: D $ (1,200,000) 1,601,100 $ 401,100 6 years 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index A B C D Rank PreferenceFindell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects Project A Project B Useful life 5 years 5 years Present value of cash inflows $84,440 $53,300 Present value of cash outflows $79,000 $46,000 What is the present value index for Project A? Multiple Choice 1.069 0.862 1.097 0.886
- Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (330,000) $ (40,000) $ (190,000) $ (2,380,000) Present value of cash inflows 480,000 56,500 286,700 3,178,500 Net present value $ 150,000 $ 16,500 $ 96,700 $ 798,500 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.nformation on four investment proposals is given below: Investment Proposal A B C D Investment required $ (900,000) $ (170,000) $ (90,000) $ (1,430,000) Present value of cash inflows 1,263,600 233,400 136,500 1,908,300 Net present value $ 363,600 $ 63,400 $ 46,500 $ 478,300 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.Information on four investment proposals is given below. Investment required Present value of cash inflows Net present value. Life of the project Investment Profitability Index Proposal A B C D $ (280,000) 393,900 $ 113,900 Rank Preference 5 years Investment Proposal B 5 (140,000) 192,800 $ 52,800 Required: 1. Compute the profitability index for each investment proposal (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference 7 years $ (50,000) 78,100 $ 28,100 6 years D $ (780,000) 1,038,100 $ 258,100 6 years
- Information on four investment proposals is given below: Investment Proposal A В Investment required Present value of cash inflows $ (360,000) $(50,000) $(140,000) $ (840,000) 214, 300 $ 146,900 $ 17,600 $ 74,300 $ 281,400 7 years 506,900 67,600 1,121,400 Net present value Life of the project 5 years 6 years б уears Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.Information on four investment proposals is provided below: Investment Proposal A B C D Investment required $ (45,000 ) $ (50,000 ) $ (35,000 ) $ (60,000 ) Present value of cash inflows 65,000 45,000 53,000 80,000 Net present value $ 20,000 $ (5,000 ) $ 18,000 $ 20,000 Life of the project 5 years 7 years 6 years 8 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. multiple choice D C B A B C A D C A D B A B C DInformation on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Index Proposal A B с D A $ (60,000) 88,000 $ 28,000 5 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Rank Preference Investment Proposal с $ (40,000) 64,200 $ 24, 200 B $ (70,000) 97,300 $ 27,300 7 years 6 years D $ (990,000) 1,318,700 $ 328,700 6
- Information on four investment proposals is given below: 6 years A B Investment required Present value of cash inflows Net present value $ (300,000) 424,800 $ 124,800 $ (140,000) 191,700 $ 51,700 Investment Proposal C $ (100,000) 151,100 $ 51,100 Life of the project 5 years 7 years Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index Rank Preference ABCD D $ (1,500,000) 2,001,700 $ 501,700 6 yearsInformation on four investment proposals is given below: Investment required. Present value of cash inflows Net present value. Life of the project Investment Profitability. Index Proposal A 8 C D A $ (790,000) 1,121,300 $ 331,300 Rank Preference 5 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal $ (120,000) 182,000 $ 62,000 B $ (120,000) 168,300 $ 48,300 7 years 6 years D $ (1,820,000) 2,427,200 $ 607,200 6 yearsThe management of Riker Inc. is exploring five different investment opportunities. Information on the five projects under study follow Project Number Investment required Present value of cash inflows at a 10% discount rate Net present value Life of the project Project 1 2 3 4 5 Profitability Index 1 2 3 $(390,000) $(330,000) $(350,000) 478,490 396,950 $ 88,490 $ 66,950 6 years 3 years First preference Second preference 433,190 $ (83,190) 5 years The company's required rate of return is 10%; thus, a 10% discount rate has been used in the preceding present value computations. Limited funds are available for investment, and so the company cannot accept all of the available projects. Third preference Fourth preference Fifth preference 4 $(330,000) Required: 1. Compute the profitability Index for each investment project. (Round your answers to 2 decimal places.) 300, 100 $ 29,900 12 years 5 $(480,000) 562,860 $82,860 6 years 2. Rank the five projects according to preference, in terms of (a)…