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Another friend of yours heard of the large amount of money you just inherited and asks you to join him in all or some of
Another friend of yours heard of the large amount of money you just inherited and asks you to join him in all or some of six different projects. The capital required for each project over the next five years is shown in the table below, along with the amount of budgeted capital. Which proposal would you choose (if any) and what is the resulting NPV of the investments 3. Capital (in $'000s) required in Proposals Expected NPV (S000s Year Year 2Year 3Year 4 Year 5 Year6 100 90 80 70 40 20 20 25 10 30 10 5 30 10 20 20 20 40 20 27 10 20 10 70 20 15 20 10 10 15 45 20 15 10 10 0 10 50 30 20 15 25 10 13 35 4 6 0 40 Capital available in each year
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