Levels Tought:
University
Teaching Since: | Apr 2017 |
Last Sign in: | 347 Weeks Ago, 1 Day Ago |
Questions Answered: | 9562 |
Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
You are chairperson of the investment committee at your firm. Five projects have been submitted to your committee for approval this month. The investment required and the project profitability index for each of these projects are presented in the following table:
Project |
Investment |
P1 |
A |
$20,000 |
2.500 |
B |
50,000 |
2.000 |
C |
70,000 |
1.750 |
D |
10.000 |
1.000 |
E |
80,000 |
0.800 |
If you have $500,000 available for investments, which of these projects would you approve? Assume that you do not have to worry about having enough resources for future investments when making this decision.
-----------