EXERCISE 15-4 Preference Ranking [LO4] Information on four investment proposals is given below: Inve


EXERCISE 15-4 Preference Ranking [LO4] Information on four investment proposals is given below: Investment Proposal C A $(120 EXERCISE 15-4 Preference Ranking [LO4] Information on four investment proposals is given below: Investment Proposal C A $(120,000) 160,000 $(100,000) 138,000 $(70,000) -105,000 $35,000 S(90,000) 126,000 Investment required… Present value of cash inflows $40,000 $ 38,000 $36,000 Net present value 6 years 6 years 7 years 5 years Life of the project Required: 1. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference.

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