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Compute the project present value index for each proposal

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Reference no: EM131776325

Information on four investment proposals is given below:

Investment Proposal

A B C D
Investment required ($90,000) ($100,000) ($70,000) ($120,000)
Present value of cash inflow $126,000 $138,000 $105,000 $160,000
Net Present Value $36,000 $38,000 $35,000 $40,000
Life of Project 5 years 7 years 6 years 6 years

1. Compute the Project Present Value Index for each proposal. Round to two decimal points. Example Project A=??, Project B?...

2. Rank the proposals in terms or order of preference.

Reference no: EM131776325

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