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Determine the net present value

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Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data:

A B C D E
Present value of net cash inflows............... $24,000 $44,000 $15,000 $30,000 $50,000

Investment cost..................................... 20,000 40,000 16,000 24,000 41,000

1) Determine the net present value and the profitability index for each project
2) Which projects are acceptable using the profitability index as a screening tool?
3) What would the raking of the acceptable projects according to the profitability indexes?

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