Please review the information on 4 potential investments: Project A Project B Project C Project D Initial
Fantastic news! We've Found the answer you've been seeking!
Question:
Please review the information on 4 potential investments:
|
| Project A | Project B | Project C | Project D |
| Initial investment | $200,000 | $250,000 | $300,000 | $90,000 |
| PV of cash inflows | $285,000 | $295,000 | $420,000 | $94,000 |
| Payback period (years) | 7.2 | 6.0 | 9.5 | 2.0 |
| NPV of project | $85,000 | $45,000 | $120,000 | $4,000 |
| Profitability index | .43 | .18 | .40 | .04 |
Under conditions of capital rationing, which project would be favored?
Group of answer choices
Project A
Project B
Project D
Project C
Expert Answer:
Posted Date:
