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A Firm Is Considering Four Projects with the Following PIs,NPVs,and

Question 97

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A firm is considering four projects with the following PIs,NPVs,and Costs.Project A: PI of 1.3,NPV of $3,600,and cost of $12,000; Project B: PI of 1.4,NPV of $5,600,and cost of $14,000; Project C: PI of 1.5,NPV of $5,000,and cost of $10,000; Project D: PI of 2.1,NPV of $8,800,and cost of $8,000.Rank the projects from best to worst in terms of their NPVs.Now rank the projects from best to worst in terms of their PIs.

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Ranking by NPV,we get D: $8,000; B: $5,6...

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