Information on Four Investment Proposals Is Given Below $$\begin{array} { | r | r |r |} \hline 4 & \$ 45 , 000 & \$ 9,000\\\hline\end{array}$$

question 185

Multiple Choice

Information on four investment proposals is given below:
$\begin{array}{|l|r|r|}\hline \text { Proposal } & \text { Investment } & \text { Net Present Value } \\\hline 1 & \$ 50,000 & \$ 30,000 \\\hline 2 & \$ 60,000 & \$ 24,000 \\\hline 3 & \$ 30,000 & \$ 15,000 \\\hline\end{array}$
$$\begin{array} { | r | r |r |} \hline 4 & \$ 45 , 000 & \$ 9,000\\\hline\end{array}$$
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.