Use the Following Information for Questions
Selma Inc -Using the Profitability Index, the Projects Rank as
A)

question 108

Multiple Choice

Use the following information for questions
Selma Inc. is comparing several alternative capital budgeting projects as shown below:
.. $\begin{array}{lrrr}&&\text { Projects }\\&A&B&C\\\text { Initial investment } & \$ 80,000 & \$ 120,000 & \$ 160,000 \\\text { Present value of net cash flows } & 90,000 & 110,000 & 200,000\end{array}$
-Using the profitability index, the projects rank as

• A) A , C , B .
• B) A, B, C .
• C) C , A , B.
• D) C, B , A.

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