Speedy Company has three potential projects from which to choose.Selected information on each of the three projects follows: $$\begin{array} { | l | c | c | c | }
\hline & \text { Praject A } & \text { Praject B } & \text { Praject C } \
\hline \text { Investment required } & \mathbf { \$ 4 2 , 5 0 0 } & \mathbf { \$ 6 5 , 8 0 0 } & \mathbf { \$ 3 3 , 7 0 0 } \
\hline \text { Net present value of praject } & \mathbf { \$ 4 5 , 7 0 0 } & \mathbf { \$ 7 5 , 4 0 0 } & \mathbf { \$ 1 0 , 2 0 0 } \
\hline
\end{array}$$ Using the profitability index,rank the projects from most profitable to least profitable.

Question

Speedy Company has three potential projects from which to choose.Selected information on each of the three projects follows: $$\begin{array} { | l | c | c | c | } 
\hline & \text { Praject A } & \text { Praject B } & \text { Praject C } \
\hline \text { Investment required } & \mathbf { \$ 4 2 , 5 0 0 } & \mathbf { \$ 6 5 , 8 0 0 } & \mathbf { \$ 3 3 , 7 0 0 } \
\hline \text { Net present value of praject } & \mathbf { \$ 4 5 , 7 0 0 } & \mathbf { \$ 7 5 , 4 0 0 } & \mathbf { \$ 1 0 , 2 0 0 } \
\hline
\end{array}$$ Using the profitability index,rank the projects from most profitable to least profitable.

Quizplus · Accepted Answer

The Answer of  Speedy Company has three potential projects from which to choose.Selected information on each of the three projects follows: $$\begin{array} { | l | c | c | c | } 
\hline & \text { Praject A } & \text { Praject B } & \text { Praject C } \
\hline \text { Investment required } & \mathbf { \$ 4 2 , 5 0 0 } & \mathbf { \$ 6 5 , 8 0 0 } & \mathbf { \$ 3 3 , 7 0 0 } \
\hline \text { Net present value of praject } & \mathbf { \$ 4 5 , 7 0 0 } & \mathbf { \$ 7 5 , 4 0 0 } & \mathbf { \$ 1 0 , 2 0 0 } \
\hline
\end{array}$$ Using the profitability index,rank the projects from most profitable to least profitable.

Speedy Company Has Three Potential Projects from Which to Choose