Question
Question:4 (Marks 10) Suppose a company has the following three projects and limits its capital budget to $50,000. Projects Present Value of Cash Inflows Initial
Question:4 (Marks 10)
Suppose a company has the following three projects and limits its capital budget to $50,000.
| Projects | Present Value of Cash Inflows | Initial Investment |
| A | $40,000 | $25,000 |
| B | 37,500 | 25,000 |
| C | 70,000 | 50,000 |
- Calculate the projects NPVs.
- Calculate the projects PIs (profitability index).
- Which project(s) should the company choose? Why?
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Financial Systems In Troubled Waters Information Strategies And Governance To Enhance Performances In Risky Times
Authors: Alessandro Carretta , Gianluca Mattarocci
1st Edition
0415628792, 978-0415628792
