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 >

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
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?

 

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 >
Transcribed Image Text: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 >
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