Fanoos Corporation is considering the following two competing investment proposals: ...
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Accounting
Fanoos Corporation is considering the following two competing investment proposals:
|
| Project A | Project B |
| Initial investment required | OMR 82,000 | OMR 105,000 |
| NPV | OMR 50,000 | OMR 40,000 |
A-Calculate the profitability index for project A.
a-1.61
b-1.16
c-0.61
d-1.38
B-Calculate the profitability index for project B.
a-1.47
b-1.38
c-0.39
d-1.61
C-Using the project profitability index, which project Fanoos Corporation should select?
a-Project C
b-Project B
c-Project A
d-None of the project
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