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10 240 104 230 projects c f and e have the and have

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Unformatted text preview: esulting increase in shareholder wealth is $27,000 with a $32,500 outlay. 77 Certified Financial Controller CFC Choosing by NPVs for BW Project F G B ICO ICO $15,000 17,500 5,000 IRR IRR NPV NPV PI PI 28% 19 25 $21,000 7,500 6,500 2.40 1.43 2.30 Projects F and G have the two largest NPVs. The resulting increase in shareholder wealth is $28,500 with a $32,500 outlay. 78 Certified Financial Controller CFC 39 Choosing by PIs for BW Project F B C D G ICO IRR NPV PI $15,000 5,000 5,000 7,500 17,500 28% 25 37 20 19 $21,000 6,500 5,500 5,000 7,500 2.40 2.30 2.10 1.67 1.43 Projects F, B, C, and D have the four largest PIs. The resulting increase in shareholder wealth is $38,000 with a $32,500 outlay. 79 Certified Financial Controller CFC Summary of Comparison Method Projects Accepted Value Added PI F, B, C, and D $38,000 NPV F and G $28,500 IRR C, F, and E $27,000 PI generates the greatest increase in greatest shareholder shareholder wealth when a limited capital budget exists for a single period. 80 Certified Financial Controller CFC 40 SingleSingle-Point Estimate and Sensitivity Analysis Sensitivity Analysis: A typ...
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