Shaylee Corp has $2.20 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: 

                                                                    Project A                   Project B                    Project C                     Project D

Initial investment                                    $ 730,000                 $ 410,000                 $   970,000                 $ 1,125,000

Present value of future cash flows      $ 945,000                 $ 505,000                 $ 1,700,000                 $ 1,260,000

Required:

1.

Is Shaylee able to invest in all of these projects simultaneously?

	Yes
	No

2.	Calculate the profitability index for each project. (Round your answers to 4 decimal places.) Project A Project B Project C Project D What is Shaylee’s order of preference based on the profitability index? Project A Project B Project C Project D

Answer rating: 100% (QA)

Complete solution 1 Total Investment required 3235000 7300004100009700001125000 NO S... View the full answer