Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 100,000 $ 125,000 $ 75,000 $ 93,750 Present value of future net cash flows $ 120,000 $ 187,500 $ 105,000 $ 180,000 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 B, D, C, A B, D, A, C A, C, B, D
Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 100,000 $ 125,000 $ 75,000 $ 93,750 Present value of future net cash flows $ 120,000 $ 187,500 $ 105,000 $ 180,000 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 B, D, C, A B, D, A, C A, C, B, D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Perkins Corporation is considering several investment proposals, as shown below:
| Investment Proposal | ||||||||||||
| A | B | C | D | |||||||||
| Investment required | $ | 100,000 | $ | 125,000 | $ | 75,000 | $ | 93,750 | ||||
| Present value of future net |
$ | 120,000 | $ | 187,500 | $ | 105,000 | $ | 180,000 | ||||
If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Multiple Choice
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D, B, C, A
-
B, D, C, A
-
B, D, A, C
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A, C, B, D
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