Question: Information on 4 investment proposals is given below:
|
Proposal
|
Investment
|
Net Present
|
|
Number
|
Required
|
Value
|
|
1
|
$ 8,000
|
$ 3,200
|
|
2
|
$ 12,000
|
$ 3,600
|
|
3
|
$ 10,000
|
$ 2,500
|
|
4
|
$ 4,000
|
$ 2,000
|
Rank the proposals in terms of preference using the project profitability index:
[A] 2, 1, 3, 4
[B] 4, 1, 2, 3
[C] 3, 2, 1, 4
[D] 2, 3, 1, 4