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The ranking of the acceptable projects

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

Project
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

What would be the ranking of the acceptable projects according to the profitability indexes?

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Solution Summary

Excel file contains calculations of profitability indexes and the ranking of the acceptable projects according to the profitability indexes.

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