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Shaylee Corp has $200 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 $200 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 Projects Project Project D Initial investment $ 422,000 $ 237,000 $ 727,000 $ 952,000 Present value of future cash flows 772,000 422,000 1,207,000 1,567,000 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) Reg 1 Reg 2A and 2 2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.) 2:3. What is Shaylee's order of preference based on the profitability index? Profitability Index Rank Project A Project B Project Project
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