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Question
Webley Corp. is considering two expansion options, but does not have enough capital to undertake both, Project W requires an investment of $100,000 and has an NPV of $10,000. Project D requires an investment of $80,000 and has an NPV of $8,200. If Webley use the profitability index to decide, it should:A) choose D because it has a higher profitability index.
B) choose W because it has a higher profitability index.
C) choose D because it has a lower profitability index.
D) choose W because it has a higher profitability index.
Answer
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