![E11-8 Comparing Projects Using Profitability Index [LO 11-6] Shaylee Corp has $2.30 million to invest in new projects. The co](http://img.homeworklib.com/questions/96c8eaf0-729e-11ea-9ebb-c3cb996b5574.png?x-oss-process=image/resize,w_560)
Homework Answers
1) No
2a) Profitability index
| Profitability index | |
| Project A | 865000/650000 = 1.3308 |
| Project B | 465000/330000 = 1.4091 |
| Project C | 1300000/890000 = 1.4607 |
| Project D | 1660000/1045000 = 1.5885 |
2b) Rank
| Rank | |
| Project A | 4 |
| Project B | 3 |
| Project C | 2 |
| Project D | 1 |
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