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The manager of a small firm wants to know which among the three different projects should the company enter into. Details of the three projects are as follows:   JOJO GINA MARIA LORINDA KANOR Initial investment P 120,000 P 125,000 P 180,000 P160,000 P35,000 Net present value 25,000 24,000 45,000 35,000 10,000 Internal rate of return 10% 15% 12% 8% 9% Profitability index 1.21 1.19 1.25 1.22 1.29 If the management has a budget of P500,000 only, which projects would be undertaken? a. Jojo, Gina, Lorinda, and Kanor b. Gina, Maria, Lorinda, and Kanor c. Jojo, Maria, Lorinda, and Kanor d. Jojo, Gina, Maria, and Kanor

The manager of a small firm wants to know which among the three different projects should the company enter into. Details of the three projects are as follows:   JOJO GINA MARIA LORINDA KANOR Initial investment P 120,000 P 125,000 P 180,000 P160,000 P35,000 Net present value 25,000 24,000 45,000 35,000 10,000 Internal rate of return 10% 15% 12% 8% 9% Profitability index 1.21 1.19 1.25 1.22 1.29 If the management has a budget of P500,000 only, which projects would be undertaken? a. Jojo, Gina, Lorinda, and Kanor b. Gina, Maria, Lorinda, and Kanor c. Jojo, Maria, Lorinda, and Kanor d. Jojo, Gina, Maria, and Kanor

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The manager of a small firm wants to know which among the three different projects should the company enter into. Details of the three projects are as follows:

 

JOJO

GINA

MARIA

LORINDA

KANOR

Initial investment

P 120,000

P 125,000

P 180,000

P160,000

P35,000

Net present value

25,000

24,000

45,000

35,000

10,000

Internal rate of return

10%

15%

12%

8%

9%

Profitability index

1.21

1.19

1.25

1.22

1.29

If the management has a budget of P500,000 only, which projects would be undertaken?

a. Jojo, Gina, Lorinda, and Kanor

b. Gina, Maria, Lorinda, and Kanor

c. Jojo, Maria, Lorinda, and Kanor

d. Jojo, Gina, Maria, and Kanor
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