Question
Company J has a $650,000 capital budget. Evaluate six projects and determine the best combination to maximize NPV. What is the IRR and total investment
Company J has a $650,000 capital budget. Evaluate six projects and determine the best combination to maximize NPV. What is the IRR and total investment of the selected projects?
Project | Investment ($000) | NPV ($000) | IRR (%) |
1 | 200 | 50 | 15.0 |
2 | 150 | 30 | 12.5 |
3 | 100 | 15 | 11.0 |
4 | 250 | 60 | 16.0 |
5 | 200 | 40 | 14.0 |
6 | 300 | 70 | 17.0 |
- Stay within the $650,000 budget.
- Maximize NPV.
- Calculate the IRR of selected projects.
- Provide total investment.
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
