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Fill the blanks A firm is considering the following projects, all of which are independent of one another. Available funds are limited to SR3 MILLION
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A firm is considering the following projects, all of which are independent of one another. Available funds are limited to SR3 MILLION ONLY in this capital budgeting period, but future periods will have no capital budget constraints. Assume that all projects are indivisible and none are mutually exclusive. ACCEPT and REJECT decisions are based on NPV & PI criteria only. PROJECT NAME INITIAL CAPITAL OUTLAY IN SR TOTAL PRESENT VALUE OF FUTURE FREE CASH FLOWS NPV PI ACCEPT/REJECT EF SR 500,000 SR 575,000 75,000 1.15 ACCEPT 900,000 1,044,000 JK 109,090 800,000 ACCEPT MN 300,000 50,000 1.17 ACCEPT PQ 600,000 590,000 -10,000 0.983 TU 700,000 900,000 200,000 1.29 ACCEPT YZ 880,000 ACCEPT 600.000 A. FILL the shaded areas in the table above with appropriate values and decisions as shown in the PROJECT EF and TU as examples. B. Base on the capital rationing situation above, list the projects that would be accepted using the Profitability Index criterion in J
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