Question
Shaylee Corporation has $2.00 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize.
Shaylee Corporation 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 | $ 427,000 | $ 242,000 | $ 732,000 | $ 957,000 |
| Present value of future cash flows | 777,000 | 427,000 | 1,212,000 | 1,572,000 |
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?
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Healthcare Fraud Auditing And Detection Guide
Authors: Rebecca S. Busch
1st Edition
0470127104, 978-0470127100
