Shaylee Corp has $2.00 million to invest in new projects. The company\'s manager

Question

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 Initial investment Present value of future cash flows Project AProject B Project C Project D S 560,000 240,000 $ 800,000 $ 955,000 775,000 420,000 1,210,000 1,570,000 Required: 1. Is Shaylee able to invest in all of these projects simultaneously? No Yos 2-a. Calculate the profitability inclex for each project. (Round your answers to 4 decimal places.) Profitability Index Project A Project B Project C Project D

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Project A Project B Project C Project D Total Initial Investment          560,000.00         240,000.00         800,000.00             955,000.00      2,555,000.00 Present Value of future cash flows          775,000.00         420,000.00      1,210,000.00          1,570,000.00 Q1a) No since Initial investment for all 4 projects is 2,555,000 which is greater than 2,000,000 Q2a Profitability Index = Present Value of cash flows/ Initial Invt                       1.38                      1.75                      1.51                          1.64 Q2 b Rank                       4.00                      1.00                      3.00                          2.00

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