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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
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 flows Project A Project Project C Project D $ 423,000 $238,000 $720,000 $ 953,000 773,000 423,000 1,208,000 1,568,000 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?
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