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8. A company has a total budget for new projects of $100,000 and four potential projects it can pursue. The projects are not mutually
8. A company has a total budget for new projects of $100,000 and four potential projects it can pursue. The projects are not mutually exclusive, except that each costs $50,000 to pursue so the company can only choose 2. Project A has NPV of $20,000, IRR of 10%, and profitability index of 1.5. Project B has NPV of $25,000, IRR of 8%, and profitability index of 1.2. Project C has NPV of $10,000, IRR of 20%, and profitability index of 2. Project D has NPV of $30,000, IRR of 12%, and profitability index of 1.3. Which projects should the company pursue and why?
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To determine which projects the company should pursue we need to consider their respective NPVs IRRs ...
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Introduction To Management Science A Modeling And Cases Studies Approach With Spreadsheets
Authors: Frederick S. Hillier, Mark S. Hillier
5th Edition
978-0077825560, 78024064, 9780077498948, 007782556X, 77498941, 978-0078024061
