Calculate the present value ratio of each proposal

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Present value ratios index Information about four investment proposals is summarized here:

Proposal

Investment Required

Net Present Value

1

$60,000

$36,000

2

24,000

9,600

3

72,000

36,000

4

72,000

14,400

Required:

Calculate the present value ratio of each proposal and indicate which proposal is the most desirable investment.

Reference no: EM13515616

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