Shaylee Corp has $2.25 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 Present value of future cash flows $ 620,000 $ 300,000 $ 860,000 $ 1,015,000 1,630,000 1,270,000 450,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Profitaility Index

Please solve for the profitiability index and explain.  The information is attached.

Shaylee Corp has $2.25 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
Present value of future cash flows
$ 620,000 $ 300,000 $ 860,000 $ 1,015,000
1,630,000
1,270,000
450,000
Transcribed Image Text:Shaylee Corp has $2.25 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 Present value of future cash flows $ 620,000 $ 300,000 $ 860,000 $ 1,015,000 1,630,000 1,270,000 450,000
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