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21. Which of the following five indivisible projects should a company invest in, given a capital budget constraint of $1 million? Project Initial outlay Profitability
21. Which of the following five indivisible projects should a company invest in, given a capital budget constraint of $1 million?
| Project | Initial outlay | Profitability Index | Net Present Value |
| A | 300,000 | 1.22 | 66,000 |
| B | 200,000 | 1.20 | 40,000 |
| C | 600,000 | 1.15 | 90,000 |
| D | 500,000 | 1.12 | 60,000 |
| E | 33,000 | 1.11 | 33,000 |
A. A, B & C
B. A & B
C. A & C
D. A, B & D
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Managerial Accounting Manufacturing And Service Applications
Authors: Arnold Schneider, Harold M. Sollenberger
4th Edition
0759350426, 978-0759350427
