23. A B C D E F Calculate the Profitability Index (P.1.) for each project below. Which one or ones should the manager send to Corporate if the manager has only $200,000 to spend in capital budgets this year? Project Initial outlay PV of future net cash flows Calculate the P.I. $56,000 $100,000 $17,500 $35,000 $225,000 $400,000 $25,000 $100,000 $100,000 $250,000 $40,000 $45,000 a. With only $200,000, do projects: A and B b. A, C, and E c. A, B, D, and E d. Do all projects as every project has P.I. > 1 24 Consider the following CFFA: What is the IRR of this project using the CFFA? 0 2 3 OCF 0 56,000 73,000 67,000 ANCF -10,000 10,000 NCS -135,000 0 CFFA -145,000 56,000 73,000 77,000 a. b. IRR = 15.77% IRR = 18.71% IRR = 27.4% IRR = 29.4% | | bobo C. d