Information on four investment proposals is given below: Rank the proposals in terms of preference according to the project profitability index:

Question

Information on four investment proposals is given below:  Rank the proposals in terms of preference according to the project profitability index:

Quizplus · Accepted Answer

Proposal 1's profitability index is 0.60 ($30,000 F1F1F1S1F1F1F10 $50,000),project 2's is 0.40 ($24,000 F1F1F1S1F1F1F10 $60,000),project 3's is 0.50 ($15,000 F1F1F1S1F1F1F10 $30,000) and project 4's is 0.20 ($9,000 F1F1F1S1F1F1F10 45,000).Therefore the projects will be ranked as follows: 1,3,2,and 4.

Information on Four Investment Proposals Is Given Below: Rank