19. Capital rationing (S5.4) Suppose you have the following investment opportunities, but only $90,000 available for investment.

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19. Capital rationing (S5.4) Suppose you have the following investment opportunities, but only

$90,000 available for investment. Which projects should you take?

Project NPV ($) Investment ($)

1 5,000 10,000 2 5,000 5,000 3 10,000 90,000 4 15,000 60,000 5 15,000 75,000 6 3,000 15,000

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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