Information on Four Investment Proposals Is Given Below What Are Preference Rankings of the Four Proposals According to Proposal

question 26

Multiple Choice

Information on four investment proposals is given below: $\begin{array}{ll}\text { Proposal }& \text { Investment }&\text { Net Present Value }\\1&\$ 50.000 & \$ 30.000 \\2&\$ 60.000 & \$ 24.000 \\3&\$ 30.000 & \$ 15,000 \\4&\$ 45.000 & \$ 9.000\end{array}$ What are preference rankings of the four proposals according to the profitability index?

• A) 3,4,1,2.
• B) 1,2,3,4.
• C) 1,3,2,4.
• D) 2,1,4,3.

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