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4 The table below lists the independent projects that your company is considering to invest: Project Initial investment (USD) NPV (USD) IRR (%) A 570000
4
The table below lists the independent projects that your company is considering to invest:
Project | Initial investment (USD) | NPV (USD) | IRR (%) |
---|---|---|---|
A | 570000 | 65964 | 13.13 |
B | 440000 | 50331 | 12.79 |
C | 110000 | 22542 | 13.40 |
D | 110000 | 27327 | 14.41 |
E | 320000 | 73857 | 13.80 |
F | 450000 | -41902 | 11.42 |
G | 460000 | 130771 | 13.86 |
The required return is 12.1 percent. If there is an investment budget ceiling of $1,000,000, what is the total net present value of investment opportunuties missed (the sum of NPVs of the feasible projects that your company couldn't invest) due to budget limit?
49869 | ||
77658 | ||
116295 | ||
50331 | ||
72873 |
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