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How would the investments be ranked

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Reference no: EM132528304

Yama Corporation is considering the following three competing investment proposals:

Investmnet A:

Initial investment Required: 62,000

Net Present Value: 10,000

Internal Rate of return: 15%

Investment B:

Initial investment Required: 74,000

Net Present Value: 8,000

Internal Rate of return: 17%

Investmnet C:

Initial investment Required: 95,000

Net Present Value: 12,000

Internal Rate of return: 18%

Question 1: Using the project profitability index, how would the above investments be ranked (highest to lowest)?

Reference no: EM132528304

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