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XY Company is considering 5 investment projects as follows: XY Company is considering 5 investment projects as follows: Project Investment ($) Profitability index (PI) A

XY Company is considering 5 investment projects as follows:

XY Company is considering 5 investment projects as follows:

Project

Investment ($)

Profitability index (PI)

A

10,000

1.2

B

6,000

1.1

C

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

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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