Question
Use the following information to answer this question. Investment project Cash outlay Present value of cash inflows A $1,100,000 $ 980,000 B 250,000 600,000 C
Use the following information to answer this question.
| Investment project | Cash outlay | Present value of cash inflows |
| A | $1,100,000 | $ 980,000 |
| B | 250,000 | 600,000 |
| C | 1,400,000 | 1,830,000 |
| D | 650,000 | 790,000 |
The company has $2,000,000 of financing available for new investment projects. If only one project may be selected, which should the company undertake to maximize profitability?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
