Your company has $15,000 to invest. You find two investments. Investment 1 requires an investment of $10,000 and has a profitability index of 1.5. Investment 2 requires an investment of 14,000 and has a profitability index of 1.3. Which project should you invest in? (a) Investment 1 (b) Investment 2

Answer rating: 100% (QA)

To determine which investment to choose we can compare the profitability indexes of both investments ... View the full answer