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PROFITABILITY INDEX Nelson Corporation is considering five different investment proposals. Using the information given below, rank...

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

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