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Speedy Company Has Three Potential Projects from Which to Choose

question 50

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Speedy Company has three potential projects from which to choose.Selected information on each of the three projects follows:  Praject A  Praject B  Praject C  Investment required $42,500$65,800$33,700 Net present value of praject $45,700$75,400$10,200\begin{array} { | l | c | c | c | } \hline & \text { Praject A } & \text { Praject B } & \text { Praject C } \\\hline \text { Investment required } & \mathbf { \$ 4 2 , 5 0 0 } & \mathbf { \$ 6 5 , 8 0 0 } & \mathbf { \$ 3 3 , 7 0 0 } \\\hline \text { Net present value of praject } & \mathbf { \$ 4 5 , 7 0 0 } & \mathbf { \$ 7 5 , 4 0 0 } & \mathbf { \$ 1 0 , 2 0 0 } \\\hline\end{array} Using the profitability index,rank the projects from most profitable to least profitable.

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Definitions:

Differential Carrier

The component within the differential housing that holds the differential gears, allowing for speed variation between a vehicle’s drive wheels.

Lube Pump

A mechanical device used to distribute lubricant under pressure to various parts of a machine or engine to ensure smooth operation and reduce wear.

Pressurized Lubricant

Lubrication method in which oil or another fluid is pumped under pressure to bearings, gears, and other components needing reduced friction and wear.

Spider

The axle hub mounting to which truck foundation brakes are mounted. Also a slang term for a U-joint cross or trunnion.

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