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Shaylee Corp has $2.30 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize.
Shaylee Corp has $2.30 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize. Information about the project as follows:
Initial
investment PV future cash flows
Project A $650,000 865,000
Project B. $ 330,000 465,000
Project C. $ 890,000 1,300,000
Project D. $ 1,045,000 1,660,000
Required:
1A) Calculate the profitability index for each project.
1b) what is shaylees order of preference based on the profitability index?
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