Blanding Company is considering several investment proposals,as shown below: Using the project profitability index,the ranking would be:

Question

Blanding Company is considering several investment proposals,as shown below:  Using the project profitability index,the ranking would be:

Quizplus · Accepted Answer

Based on the project profitability index, the projects should be ranked in descending order of their indexes. The project profitability indexes are as follows: 
Project A: 1.17 
Project B: 1.25 
Project C: 1.23 
Project D: 1.26

Therefore, the best choice(s) would be Project D, as it has the highest project profitability index.

Blanding Company Is Considering Several Investment Proposals,as Shown Below