Investment projects using the project profitability index

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Reference no: EM132203318

The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):

Project 1

Project 2

Project 3

Investment required

$82,400

$125,900

$235,500

Discounted value of cash inflows

$90,064

$145,084

$258,175

The only cash outflows are the initial investments in the projects.

Required:

Rank the investment projects using the project profitability index.

Rank 1

project

Rank 2

project

Rank 3

project

Reference no: EM132203318

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