Compute the project profitability index

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Reference no: EM13509152

Information on four investment proposals at Tampa Corp. is given below:


A

B

C

D

Investment required

$85,000

$200,000

$90,000

$170,000

Present value of cash flows

119,000

250,000

135,000

221,000

Net present value

34,000

50,000

45,000

51,000

Life of the project

5 year

7 year

6 year

6 year

Required: Compute the project profitability index for each proposal and rank the proposals in terms of preference.

 

Reference no: EM13509152

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