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Shaylee Corp has $2.25 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize.
Shaylee Corp has $2.25 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 $ 580,000 $260,000 $820,000 $975,000
Present value of future cash flows 795,000 430,000 1,230,000 1,590,000
| Is Shaylee able to invest in all of these projects simultaneously? | ||||
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2. | Calculate the profitability index for each project. (Round your answers to 4 decimal places.) Project A: Project B: Project C: |
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