There is a capital constraint of £10,000 in the initial period. The two scalable projects available for investment are projects B and C from Example 10.2. The cash flows, NPVS at 10 percent, and profitability indexes are given below. Which is the better project? Cash Flow (in £000s) at Date Net Present Values Profitability Index 1 2 (in £000s) -1 -5 22 -12.1 9 10 Project B Project C 44 -24.2 15 4

There is a capital constraint of £10,000 in the initial period. The two scalable projects available for investment are projects B and C from Example 10.2. The cash flows, NPVS at 10 percent, and profitability indexes are given below. Which is the better project? Cash Flow (in £000s) at Date Net Present Values Profitability Index 1 2 (in £000s) -1 -5 22 -12.1 9 10 Project B Project C 44 -24.2 15 4

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section: Chapter Questions

Problem 23SP: Start with the partial model in the file Ch10 P23 Build a Model.xlsx on the textbooks Web site....

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