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Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize.
Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows: Project A Project B Initial investment $ 435,000 $ 250,000 Present value of future cash flows 785,000 435,000 Project C Project D $ 740,000 $ 965,000 1,220,000 1,580,000 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 Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Is Shaylee able to invest in all of these projects simultaneously? Is Shaylee able to invest in all of these projects simultaneously? Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows: Initial investment Present value of future cash flow Project A Project B Project C Project D $ 435,000 $250,000 $ 740,000 $ 965,000 785,000 435,0001,220,000 1,580,000 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 Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. 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
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