Question
Company I has $1,000,000 for investment in seven projects. Choose projects to maximize IRR within the budget. What is the total NPV and investment required?
Company I has $1,000,000 for investment in seven projects. Choose projects to maximize IRR within the budget. What is the total NPV and investment required?
Project | Investment ($000) | NPV ($000) | IRR (%) |
1 | 400 | 85 | 15.5 |
2 | 150 | 35 | 13.0 |
3 | 250 | 60 | 14.5 |
4 | 200 | 40 | 12.5 |
5 | 100 | 20 | 11.0 |
6 | 300 | 75 | 16.0 |
7 | 200 | 45 | 13.5 |
- Select projects within the $1,000,000 budget.
- Maximize IRR.
- Calculate the combined NPV of selected projects.
- Determine the total investment.
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
