STR_581_WEEK_4_CAPSTON E_EXAM part 1
Ashford University
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STR_581_WEEK_4_CAPSTON E_EXAM part 1
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---5January 20222021/2022A+
- STR_581_WEEK_4_CAPSTON 
E_EXAM part 1 
1. What decision criteria should managers use in selecting projects when there is not enough 
capital to invest in all available positive NPV projects? 
the profitability index 
2. TuleTime Comics is considering a new show that will generate annual cash flows of $100,000 
into the infinite future. If the initial outlay for such a production is $1,500,000 and the 
appropriate discount rate is 6 percent for the cash flows, then what is the profitability in...
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