A company has only $700,000 available for investment during the coming year. It has identified the following four investment opportunities, all of which are divisible, and have the same life.
|
Investment |
Capital required $ |
Net present value $ |
|
J |
400,000 |
650,000 |
|
K |
250,000 |
450,000 |
|
L |
300,000 |
480,000 |
|
M |
350,000 |
550,000 |
Calculate the correct rank order for these investments (best first).