University:
Bradley University
Course:
MTG 315 |Principles Of Marketing
Academic year:

2023
Views:

258

Pages:

1
Author:

Charlee Buchanan

1. Bowen Company is considering several investment proposals, as shown below: A Investment required...........................$95,000 Present value of future net cash flows............................................ $107,000 Investment Proposal B C D $120,000 $90,000 $150,000 $130,000 $105,000 $180,000 If the project profitability index is used, the ranking of the projects would be: A) D C A B B) D B A C C) B A C D D) D A B C 2. Information on four investment proposals is given below: Proposal Number 1 2 3 4 Investment Required $20,000 $15,000 $12,000 $18,000 Net Present Value $10,000 $6,000 $9,600 $10,800 Rank the proposals in terms of preference according to the project profitability index: A) 1, 4, 3, 2 B) 4, 1, 3, 2 C) 3, 4, 1, 2 D) 2, 1, 4, 3