Shaylee Corp has $2.00 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 $ 434,000 $ 249,000 $ 739,000 $ 784,000 Project D 964,000 Initial investment Present value of future cash flows 434,000 1,219,000 1,579,000 Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Is Shaylee able to invest in all of these projects simultaneously? Is Shaylee able to invest in all of these projects simultaneously? < Req 1 Req 2A and 2B > Shaylee Corp has $2.00 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 $ 434,000 $ 249,000 $ 739,000 $ 964,000 784,000 Project D Initial investment Present value of future cash flows 434,000 1,219,000 1,579,000 Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B 2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.) 2-B. What is Shaylee's order of preference based on the profitability index? Profitability Index Rank Project A Project B Project C Project D Req 1 Req 2A and 2B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shaylee Corp has $2.00 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 $ 434,000 $ 249,000 $ 739,000 $ 964,000
Present value of future cash flows   784,000   434,000   1,219,000   1,579,000
 

  

Required:

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

2-A. Calculate the profitability index for each project.

2-B. What is Shaylee’s order of preference based on the profitability index?

Shaylee Corp has $2.00 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
$ 434,000 $ 249,000 $ 739,000 $
784,000
Project D
964,000
Initial investment
Present value of future cash flows
434,000
1,219,000
1,579,000
Required:
1. Is Shaylee able to invest in all of these projects simultaneously?
2-A. Calculate the profitability index for each project.
2-B. What is Shaylee's order of preference based on the profitability index?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A and 2B
Is Shaylee able to invest in all of these projects simultaneously?
Is Shaylee able to invest in all of these projects simultaneously?
< Req 1
Req 2A and 2B >
Transcribed Image Text:Shaylee Corp has $2.00 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 $ 434,000 $ 249,000 $ 739,000 $ 784,000 Project D 964,000 Initial investment Present value of future cash flows 434,000 1,219,000 1,579,000 Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Is Shaylee able to invest in all of these projects simultaneously? Is Shaylee able to invest in all of these projects simultaneously? < Req 1 Req 2A and 2B >
Shaylee Corp has $2.00 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
$ 434,000 $ 249,000 $ 739,000 $ 964,000
784,000
Project D
Initial investment
Present value of future cash flows
434,000
1,219,000
1,579,000
Required:
1. Is Shaylee able to invest in all of these projects simultaneously?
2-A. Calculate the profitability index for each project.
2-B. What is Shaylee's order of preference based on the profitability index?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A and 2B
2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.)
2-B. What is Shaylee's order of preference based on the profitability index?
Profitability
Index
Rank
Project A
Project B
Project C
Project D
Req 1
Req 2A and 2B >
Transcribed Image Text:Shaylee Corp has $2.00 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 $ 434,000 $ 249,000 $ 739,000 $ 964,000 784,000 Project D Initial investment Present value of future cash flows 434,000 1,219,000 1,579,000 Required: 1. Is Shaylee able to invest in all of these projects simultaneously? 2-A. Calculate the profitability index for each project. 2-B. What is Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B 2-A. Calculate the profitability index for each project. (Round your answers to 4 decimal places.) 2-B. What is Shaylee's order of preference based on the profitability index? Profitability Index Rank Project A Project B Project C Project D Req 1 Req 2A and 2B >
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