Shaylee Corporation has $2.00 million to invest in new projects. The companys managers have presented...
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Shaylee Corporation has $2.00 million to invest in new projects. The companys managers have presented a number of possible options that the board must prioritize. Information about the projects follows: Project A Project B Project C Project D Initial investment $ 422,000 $ 237,000 $ 727,000 $ 952,000 Present value of future cash flows 772,000 422,000 1,207,000 1,567,000
1. Is Shaylee able to invest in all of these projects simultaneously?
2-a. Calculate the profitability index for each project. Note: Round your answers to 4 decimal places.
2-b. What is Shaylees order of preference based on the profitability index?
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