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	$	426,000	$	241,000	$	731,000	$	956,000
Present value of future cash flows		776,000		426,000		1,211,000		1,571,000

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?

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