The projects according to the profitability index


Tanna corporation is considering three investment projects: O, P, and Q. Project O would require an investment of $38,000, Project P of $49,000, and Project Q of $91,000. No other cash outflows would be involved. The present value of cash inflows would be $42,180 for Project O, $53,900, for Project P, and $91,910 for Profect Q. rank the projects according to the profitability index, from most profitable to least profitable.

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Accounting Basics: The projects according to the profitability index
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