Suppose the capital budget in the lecture example worksheet was $100,000. What is the NPV of the best project(s)?  

 

WACC= Project A B C D E F B A Ranking by NPV Project E F D 10.00% Fixed Budget = BCEAFD $250,000 Initial Investment PV of Inflows NPV A Ranking by IRR or Pl Project -$80,000 $100,000 $20,000 -$70,000 $112,000 $42,000 -$100,000 $145,000 $45,000 $36,000 $79,000 -$40,000 -$60,000 -$110,000 -$4,000 $19,000 $126,500 $16,500 Initial Investment PV of Inflows NPV -$100,000 $145,000 $45,000 -$70,000 $112,000 $42,000 -$80,000 $100,000 $20,000 -$60,000 $19,000 -$110,000 $16,500 -$40,000 $79,000 $126,500 $36,000 -$4,000 Initial Investment PV of Inflows NPV -$70,000 $112,000 $42,000 -$100,000 $145,000 $45,000 -$60,000 $79,000 $19,000 -$80,000 $100,000 -$110,000 -$40,000 $20,000 $126,500 $16,500 $36,000 -$4,000 IRR IRR IRR 12.00% 20.00% 16.00% 8.00% 15.00% 11.00% 16.00% 20.00% 12.00% 15.00% 11.00% 8.00% 20.00% 16.00% 15.00% 12.00% 11.00% 8.00% PI PI PI 1.25 1.60 1.45 0.90 1.32 1.15 Investment NPV 1.45 $100,000 $45,000 1.60 $170,000 $87,000 1.25 $250,000 $107,000 1.32 1.15 0.90 Investment NPV 1.60 $70,000 $42,000 1.45 $170,000 $87,000 1.32 $230,000 $106,000 1.25 1.15 0.90