Question
Company G has a $900,000 capital budget for the year. Evaluate six projects and determine the best set to maximize IRR. What is the total
Company G has a $900,000 capital budget for the year. Evaluate six projects and determine the best set to maximize IRR. What is the total NPV and investment of the selected projects?
Project | Investment ($000) | NPV ($000) | IRR (%) |
1 | 300 | 75 | 18.0 |
2 | 200 | 40 | 12.5 |
3 | 150 | 30 | 11.0 |
4 | 250 | 55 | 15.0 |
5 | 350 | 80 | 16.5 |
6 | 200 | 35 | 13.0 |
- Select projects within the $900,000 budget.
- Maximize IRR.
- Calculate the total NPV.
- Determine total investment.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
