Problem: Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data:
Project
A B C D E
Present value of
net cash inflows . . . . . . . . $24,000 $44,000 $15,000 $30,000 $50,000
Investment cost . . . . . . . . .20,000 40,000 16,000 24,000 41,000
What would be the ranking of the acceptable projects according to the profitability indexes?