Co CLOK HERE TO SAVE YOUR WO Project Number 2 3 $ 350,000 $ 250,000 $ 92,440 $53,280 10 S 16% 1894 5 370.000 $ 73,800 4 19% 1 $ 400,000 $ 130,740 5 22% Investment required Net present value Life of the project in years) Internal Rate of Return Since the company's required rate of return is 10%, a 10% discount rate has been used in the present value comptons are available for investment, so the company cannot accept all of the available projects. 10 11 Required: 12 1. Compute the project profitability index for each project. (4 marks) Round the final answers to 2 decimal places 13 Project Profitability index M 19 D Project 1 Project 2 Project 3 Project 4 15 16 17 18 19 8 17 R 2 New.. 6 SA % IK PI V4 5 14 D CLICK HERE TO SAVE YOUR WORK B In order of preference, rank the four projects in terms of net present value, project profitability 20 2 Project Net Present Profitability Internal Rate Value index of Return 21 22 First preference Second preference Third preference Fourthe preference Investment Required 23 24 25 26 27 28 29 3. If the company has $860,000 available to invest, in which project(s) should be selected and why? (3 marks) 30 SAI ZeIDOON 9 19 D ES 8 31 32 33 34 35 Project 1 Project 2 Project 3 Project 4 Total invested 17 W 16 A U New /A ola