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	$	430,000	$	245,000	$	735,000	$	960,000
Present value of future cash flows		780,000		430,000		1,215,000		1,576,000

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?

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

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

• Req 2A and 2B

2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.)

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

	Profitability Index	Rank
Project A
Project B
Project C
Project D