Question: A. Problem -LO 3: (10 marks) Suppose a company has the following three projects and limits its capital budget to $50000. Projects Present Value of

A. Problem -LO 3: (10 marks) Suppose a company has the

A. Problem -LO 3: (10 marks) Suppose a company has the following three projects and limits its capital budget to $50000. Projects Present Value of Cash Inflows Initial Investment $40000 $25000 37500 25000 70000 50000 1. Calculate the projects' net present values (NPVs). 2. Calculate the projects' profitability indexes (PIs). 3. Which project(s) should the company choose? Why? A B

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