Question
Badger Enterprises is considering the five investment projects shown below ($ millions) Project NPV Initial Investment Golf $2.4 $1.8 Hotel $8.1 $5.4 India $2.0 $1.0
Badger Enterprises is considering the five investment projects shown below
| ($ millions) | ||
| Project | NPV | Initial Investment |
| Golf | $2.4 | $1.8 |
| Hotel | $8.1 | $5.4 |
| India | $2.0 | $1.0 |
| Juliet | $1.5 | $1.4 |
| Kilo | $6.0 | $2.2 |
Badgers budget for new projects is $10 million and wants choose the projects that maximize total NPV subject to the budget constraint. What is the maximum possible NPV?
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Global Corporate Finance A Focused Approach
Authors: Kenneth Kim, Suk Kim
3rd Edition
9811207119, 9789811207112
