The division manager of Bagley Company asked her assistant to gather information for a new investment. She is impressed with all the information but is unsure about which investment to choose because they are of such different sizes. Since the investments are mutually exclusive, she can choose only one. As might be expected, she wants the one that will return the most for the money. The relevant information for each project is as follows.
Required:
Someone told the manager the profitability index helped to solve decisions when the other factors were confusing. What is the profitability index for each project?

Question

The division manager of Bagley Company asked her assistant to gather information for a new investment. She is impressed with all the information but is unsure about which investment to choose because they are of such different sizes. Since the investments are mutually exclusive, she can choose only one. As might be expected, she wants the one that will return the most for the money. The relevant information for each project is as follows.
  Required:
Someone told the manager the profitability index helped to solve decisions when the other factors were confusing. What is the profitability index for each project?

Quizplus · Accepted Answer

The Answer of The division manager of Bagley Company asked her assistant to gather information for a new investment. She is impressed with all the information but is unsure about which investment to choose because they are of such different sizes. Since the investments are mutually exclusive, she can choose only one. As might be expected, she wants the one that will return the most for the money. The relevant information for each project is as follows.
  Required:
Someone told the manager the profitability index helped to solve decisions when the other factors were confusing. What is the profitability index for each project?

The Division Manager of Bagley Company Asked Her Assistant to Gather