Information on four investment proposals is given below:
|
Proposal
|
Investment
|
Net Present
|
|
Number
|
Required
|
Value
|
|
1
|
$20,000
|
$10,000
|
|
2
|
$15,000
|
$6,000
|
|
3
|
$12,000
|
$9,600
|
|
4
|
$18,000
|
$10,800
|
Rank the proposals in terms of preference according to the project profitability index:
A) 1, 4, 3, 2
B) 4, 1, 3, 2
C) 3, 4, 1, 2
D) 2, 1, 4, 3