Question
A company has five independent project proposals and its management has provided you with the following information. Project 1, 2,3,4, and 5 respectively here are
A company has five independent project proposals and its management has provided you with the following information. Project 1, 2,3,4, and 5 respectively here are the data : required investment 500 project 1, 1,000,000 project 2, 750,000 project 3,and 1,500,000 project 4, and 900,000 for project 5 total of 4,650,000. NPV at the appropriate cost of Capital 40,000 and 55,000 and 25,000 and 33,000 and 65,000 respectively.t The budget available is P 4,500,000. Assume that the [rojects are not divisible. a)What is profitability index of project 2___.B) What is profitability index of project 4_____.C) Which project ranked first?_____D)What is the optimal combination of projects?_____
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