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*** B 3) The managers of BTU are keen to expand the company by carrying out new projects. The company is facing shortages of capital

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*** B 3) The managers of BTU are keen to expand the company by carrying out new projects. The company is facing shortages of capital over the next year but expects capital to be freely available after that. At Time 0, a limit of $600,000 has been set for the maximum funds available to be invested. The details of the initial investment and NPV for the available projects are given as follows: Project Investment ($) NPV (5 A 135.000 6000 B 200,000 30,000 c 125,000 20.000 D 150.000 2000 E 175.000 10,000 F 75.000 10.000 G 80.000 9000 H 200.000 20.000 1 50.000 4000 Each project can only be undertaken once, i. Which projects should BTU invest in, and in what order assuming all projects are divisible and all projects are not mutually exclusive? What is the maximum net present value available! (396) ii. Which projects should BTU invest in, and in what order assuming all projects are non divisible and all projects are not mutually exclusive? What is the maximum ne present value available! minu all projects are Send a Chat 13:14 1 O

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