Shaylee Corp has $2.00 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize. Information about the projects follows:

	Project A		Project B		Project C		Project D
Initial investment	$	432,000	$	247,000	$	737,000	$	962,000
Present value of future cash flows		782,000		432,000		1,217,000		1,577,000

Required:

1. Is Shaylee able to invest in all of these projects simultaneously?

2-A. Calculate the profitability index for each project.

2-B. What is Shaylees order of preference based on the profitability index?

Req 1 Req 2A and 2B 2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.) 2-B. What is Shaylee's order of preference based on the profitability index? Profitability Index Rank Project A Project B Project C Project D