Solved

Information on Four Investment Proposals Is Given Below 4$45,000$9,000\begin{array} { | r | r |r |} \hline 4 & \$ 45 , 000 & \$ 9,000\\\hline\end{array}

Question 43

Multiple Choice

Information on four investment proposals is given below:
 Proposal  Investment  Net Present Value 1$50,000$30,0002$60,000$24,0003$30,000$15,000\begin{array}{|l|r|r|}\hline \text { Proposal } & \text { Investment } & \text { Net Present Value } \\\hline 1 & \$ 50,000 & \$ 30,000 \\\hline 2 & \$ 60,000 & \$ 24,000 \\\hline 3 & \$ 30,000 & \$ 15,000 \\\hline\end{array}
4$45,000$9,000\begin{array} { | r | r |r |} \hline 4 & \$ 45 , 000 & \$ 9,000\\\hline\end{array}
What are preference rankings of the four proposals according to the profitability index?


A) 3, 4, 1, 2.
B) 1, 2, 3, 4.
C) 1, 3, 2, 4.
D) 2, 1, 4, 3.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents