Question
A firm has identified four possible projects all of which are divisible: The Initial investment of project A,B,C, and D are 50000, 10000, 10000 and
A firm has identified four possible projects all of which are divisible: The Initial investment of project A,B,C, and D are 50000, 10000, 10000 and 15000 respectively. The NPV of project A,B,C, and D are 100000, (50000), 40000, and 45000 respectively.
All must be started immediately but the firm has only $50,000 available for investment and project C and D are mutually exclusive. Requirement: Determine the optimal project selection.
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
