350. CSO: 2D4b LOS: 2D4c Carbide Inc. has the following investment opportunities. Required investment outlays and the profitability index for each of these investments are as follows. Project Investment Cost Profitability Index I $300,000 0.5 II 450,000 1.4 III 650,000 1.8 IV 750,000 1.6 Carbide’s budget ceiling for initial outlays during the present period is $1,500,000. The proposed projects are independent of each other. Which project or projects would you recommend that Carbide accept? a. III. b. III and IV. c. I, II, and IV. d. I, III, and IV.

2D4C CARBIDE INC. HAS THE FOLLOWING INVESTMENT OPPORTUNITIES. REQUIR...

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350.

CSO: 2D4b

LOS: 2D4c

Carbide Inc. has the following investment opportunities. Required investment outlays

and the profitability index for each of these investments are as follows.

Project

Investment Cost

Profitability Index

$300,000

0.5

450,000

1.4

III

650,000

1.8

750,000

1.6

Carbide’s budget ceiling for initial outlays during the present period is $1,500,000. The

proposed projects are independent of each other. Which project or projects would you

recommend that Carbide accept?

III.

III and IV.

I, II, and IV.

I, III, and IV.