Suppose a company has the following three project and limits it capital budget to $50,000. Project Present Value of Cash Initial Investment A. $40,000. $25,000B. 37,500. 25,000C. 70,000. 50,0001. Calculate the projects' NPVs.2. Calculate the projects' PIs.3. Which project (s) should the company choose? Why?
Suppose a company has the following three project and limits it capital budget to $50,000. Project Present Value of Cash Initial Investment A. $40,000. $25,000B. 37,500. 25,000C. 70,000. 50,0001. Calculate the projects' NPVs.2. Calculate the projects' PIs.3. Which project (s) should the company choose? Why?
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 2PROB
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Suppose a company has the following three project and limits it capital budget to $50,000.
Project Present Value of Cash Initial Investment
A. $40,000. $25,000
B. 37,500. 25,000
C. 70,000. 50,000
1. Calculate the projects' NPVs.
2. Calculate the projects' PIs.
3. Which project (s) should the company choose? Why?
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