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XY Company is considering 5 investment projects as follows: Project Investment ($) Profitability index (PI) A 10,000 1.2 B 6,000 1.1 18,000 1.6 D 14,000
XY Company is considering 5 investment projects as follows: Project Investment ($) Profitability index (PI) A 10,000 1.2 B 6,000 1.1 18,000 1.6 D 14,000 0.9 E 12,000 1.3 The company has $30,000 available for investment. Projects C and E are mutually exclusive. All projects can be undertaken only once and are not divisible. Required: Calculate the projects' NPV A. A:$2,000; B:$600; C:$10,800; D:($1,400); E:$3,600 B. A:$2,000; B:($600); C:$10,800; D:($1,400); E:$3,600 C. A:$2,000; B:($600); C:$10,800; D:$1,400; E:$3,600 D. none of the above
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