Bowen Company is considering several investment proposals, as shown below:
| |
Investment Proposal
|
| |
A
|
B
|
C
|
D
|
|
Investment required
|
$95,000
|
$120,000
|
$90,000
|
$150,000
|
|
Present value of future net cash flows
|
$107,000
|
$130,000
|
$105,000
|
$180,000
|
If the project profitability index is used, the ranking of the projects would be:
A) D C A B
B) D B A C
C) B A C D
D) D A B C