What is the profitability index of project 4 which project


A Company has five independent project proposals and its managementhas provided you with the following information, Project 1, Required Investment (Pesos)500,000, NPV at the appropriate Cost of Capital 40,000. Project 2, 1,000,000. NPV at the appropriate cost of Capital 55,000. Project 3 , Required Investment (Pesos) 750,000. NPV at the appropriate Cost of Capital 25,000. Project 4 ,Required Investment (Pesos) 1,500,000. NPV at the appropriate Cost of Capital 33,000. Project 5 , Required Investment (pesos) 900,000. NPV at the appropriate Cost of Capital 65,000. The budget available is P4,500,000. Assume that the projects are not divisible.. A) What is the profitability index of Project 2. B) What is the profitability index of project 4? C) Which project ranked first? d) What is the optimal combination of projects?

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Financial Management: What is the profitability index of project 4 which project
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