In: Accounting
PROFITABILITY INDEX
Nelson Corporation is considering five different investment proposals. Using the information given below, rank the investments based on the profitability index.
___________Investment Proposal______________
A B C D E
Investment required………………………… 40,000 185,000 90,000 750,000 72,000
Present value of future cash inflows……… 60,000 150,000 112,000 800,000 98,000