Projects according to the profitability index

Reference no: EM13147074

Tanna Corporation is considering three investment projects: O, P, and Q. Project O would require an investment of $38,000, Project P of $49,000, and Project Q of $91,000. No other cash outflows would be involved. The present value of the cash inflows would be $42,180 for Project O, $53,900 for Project P, and $91,910 for Project Q. Rank the projects according to the profitability index, from most profitable to least profitable.

A) P,O,Q

B) O,Q,P

C) Q,O,P

D) O,P,Q

Reference no: EM13147074

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