Check my work E11-8 (Algo) Comparing Projects Using Profitability Index [LO 11-6] Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows: points Project A Project B $ 419,000 $ 234,000 $ 769,000 Project C 724,000 $ 1,204,000 Project D 949,000 1,564,000 Initial investment Present value of future cash flows 419,000 eBook Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Hint References Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Is Shaylee able to invest in all of these projects simultaneously? Is Shaylee able to invest in all of these projects simultaneously? < Req 1 Req 2A and 2B >
Check my work E11-8 (Algo) Comparing Projects Using Profitability Index [LO 11-6] Shaylee Corp has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows: points Project A Project B $ 419,000 $ 234,000 $ 769,000 Project C 724,000 $ 1,204,000 Project D 949,000 1,564,000 Initial investment Present value of future cash flows 419,000 eBook Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Hint References Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Is Shaylee able to invest in all of these projects simultaneously? Is Shaylee able to invest in all of these projects simultaneously? < Req 1 Req 2A and 2B >
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 17PROB
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1. Is Shaylee able to invest in all of these projects simultaneously?
2-A. Calculate the profitability index for each project.
2-B. What is Shaylee’s order of preference based on the profitability index?
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