Question
Company Mar a Lago has $ 6,000,000 of available fund for investment during 2021. It has five profitable projects under consideration, with the following
Company Mar –a – Lago has $ 6,000,000 of available fund for investment during 2021. It has five profitable projects under consideration, with the following details:
Project | Initial investment ($) | Present value of cash flows ($) | Net Present value ($) |
A | (200,000) | 240,000 | 40,000 |
B | (600,000) | 670,000 | 70,000 |
C | (100,000) | 132,000 | 32,000 |
D | (400,000) | 450,000 | 50,000 |
E | (200,000) | 260,000 | 60,000 |
Requirement 1: Determine the optimal combination of projects, assuming that projects are divisible.
Requirement 2: Determine the optimal combination of projects, assuming that projects are indivisible.
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Answer Statement showing the rankings of project as per their profitability index Project Initial ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
