Ignore the impact of income taxes in your calculationbased

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Reference no: EM13601353

Capital State University is evaluating the two investment proposals given below:
Investment Proposal

Investment required $(200,000) $(100,000)
Present value of cash inflows 250,000 130,000
Net present value $50,000 $30,000
Life of the project 7years 5 years

Ignore the impact of income taxes in your calculation.Based on project profitability index for each investment proposal, which investment proposal should be undertaken and what is its project profitability index?

Reference no: EM13601353

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