Question
Morris Corp. is considering three mutually exclusive potential investments with the following costs and cash flow estimates: Project A Project B Project C Cost $526,000
Morris Corp. is considering three mutually exclusive potential investments with the following costs and cash flow estimates:
| Project A | Project B | Project C | |
| Cost | $526,000 | $302,000 | $160,000 |
| Present value of annual cash flows | 512,204 | 308,448 | 154,189 |
| Present value of residual value | 26,572 | 30,298 | 31,976 |
Which investment should Morris make if it is deciding on the basis of profitability index? Enter 1 for Project A, 2 for Project B, or 3 for Project C. Enter 0 if none of the investments should be made.
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Water Audits And Loss Control Programs
Authors: American Water Works Association
4th Edition
1625761007, 978-1625761002
