Solution-Compute the project profitability index

Compute the project profitability index

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Reference no: EM13509152

Information on four investment proposals at Tampa Corp. is given below:

	A	B	C	D
Investment required	$85,000	$200,000	$90,000	$170,000
Present value of cash flows	119,000	250,000	135,000	221,000
Net present value	34,000	50,000	45,000	51,000
Life of the project	5 year	7 year	6 year	6 year

Required: Compute the project profitability index for each proposal and rank the proposals in terms of preference.

Reference no: EM13509152

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Compute the project profitability index

Reference no: EM13509152

Reference no: EM13509152

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