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There are 2 parts to this question Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of
There are 2 parts to this question
Shaylee Corp has $2.00 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: Initial investment Present value of future cash flows Project A Project B Project C Project D $ 431,000 $ 246,000 $ 736,200 $ 961,000 781,000 431,000 1,216,000 1,576,000 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. Req 1 Reg 2A and 2B 2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.) 2-B. What is Shaylee's order of preference based on the profitability index? Profitability Index Rank Project A Project B Project C Project DStep by Step Solution
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