Question: Given the following annual returns for Stock ABC, what does a $1,500 investment grow to over the 5-year period? Year 1: 15% Year 2: 20%

Given the following annual returns for Stock ABC, what does a $1,500 investment grow to over the 5-year period?

Year 1: 15%

Year 2: 20%

Year 3: 25%

Year 4: 15%

Year 5: 15%

$1,500

3,422

$2,467

$5,595

$2,000

Given the following information, in which order would you choose the following projects based on the profitability index?

Project A (NPV of cash flows: $160,000, Investment Cost: $50,000)

Project B (NPV of cash flows: $330,000, Investment Cost: $190,000)

Project C (NPV of cash flows: $180,000, Investment Cost: $110,000)

Project A, Project B then Project C

Project B, Project A then Project C

Project C, Project B then Project A

Project A, Project C then Project B

Project B, Project C then Project A

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