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please see attached image Imperial Systems has $0.5 million available for capital investments during the current year. A list of possible investment projects, together with
please see attached image
Imperial Systems has $0.5 million available for capital investments during the current year. A list of possible investment projects, together with their net investments and net present values, is provided in the following table: Project Net Present Value Net Investment $50,000 1 $13,000 2 260,000 38,000 3 110,000 47,000 4 80,000 9,000 5 270,000 40,000 6 180,000 -10,000 7 410,000 37,000 8 250,000 17,000 a. & b. Compute the investment projects profitability indexes and rank them in descending order. Which projects should be adopted considering the capital constraints? Round the profitability index values to three decimal places. Project PI Rank Should the project be adopted? -Select- 1 2 -Select- 3 -Select- 4 Select 5 -Select- V 6 Select v 7 -Select- 8 Select v Calculate the aggregate net present value. Round the answer to the nearest dollar. $ Calculate the expended capital funds. Round the answer to the nearest dollar. $ Are all capital funds expended? -Select-v c. Is there another combination that produces a higher aggregate net present value than the one developed in Parts a.&b.? Round the NPV value to the nearest dollar. -Select-, -Select- . The highest NPV is $ d. If less than the entire amount of available funds is invested, what is the opportunity cost of the unused funds? The opportunity cost of the unexpended funds is the amount of the unexpended funds Select by Select- Imperial Systems has $0.5 million available for capital investments during the current year. A list of possible investment projects, together with their net investments and net present values, is provided in the following table: Project Net Present Value Net Investment $50,000 1 $13,000 2 260,000 38,000 3 110,000 47,000 4 80,000 9,000 5 270,000 40,000 6 180,000 -10,000 7 410,000 37,000 8 250,000 17,000 a. & b. Compute the investment projects profitability indexes and rank them in descending order. Which projects should be adopted considering the capital constraints? Round the profitability index values to three decimal places. Project PI Rank Should the project be adopted? -Select- 1 2 -Select- 3 -Select- 4 Select 5 -Select- V 6 Select v 7 -Select- 8 Select v Calculate the aggregate net present value. Round the answer to the nearest dollar. $ Calculate the expended capital funds. Round the answer to the nearest dollar. $ Are all capital funds expended? -Select-v c. Is there another combination that produces a higher aggregate net present value than the one developed in Parts a.&b.? Round the NPV value to the nearest dollar. -Select-, -Select- . The highest NPV is $ d. If less than the entire amount of available funds is invested, what is the opportunity cost of the unused funds? The opportunity cost of the unexpended funds is the amount of the unexpended funds Select by SelectStep by Step Solution
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