Project Investment ($) NPV ($) A 135,000 6000 B 200,000 30,000 125,000 20,000 D 150,000 2000 E
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Question:
Project Investment ($) NPV ($)
A 135,000 6000
B 200,000 30,000
125,000 20,000
D 150,000 2000
E 175,000 10,000
F 75,000 10,000
G 80,000 9000
H 200,000 20,000
I 50,000 4000
2. Assume you have the above projects
a. Calculate the profitability index for each project
b. Which is the first project you would pursue and which one the last one? Why?
c. If you have $600,000, which project(s) would you pursue and in what order?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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