Shaylee Corp has $2.20 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 $ 730,000 $ 410,000 $ 970,000 $ 1,125,000

Present value of future cash flows $ 945,000 $ 505,000 $ 1,700,000 $ 1,260,000

Required:

1.

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

	Yes
	No

2.	Calculate the profitability index for each project. (Round your answers to 4 decimal places.) Project A Project B Project C Project D What is Shaylees order of preference based on the profitability index? Project A Project B Project C Project D