Question
Consider the following list of projects: Note: NPV stands for Net Present Value, and PI stands for Profitability Index. Pl is calculated as the
Consider the following list of projects: Note: NPV stands for Net Present Value, and PI stands for Profitability Index. Pl is calculated as the ratio of NPV/Investment. Project A B C D E F G H I J Investment 405,000 600,000 375,000 450,000 525,000 225,000 240,000 600,000 150,000 270,000 NPV 18,000 90,000 60,000 6,000 30,000 30,000 27,000 60,000 12,000 30,000 PI 0.0444 0.1500 0.1600 0.0133 0.0571 0.1333 0.1125 0.1000 0.0800 0.1111 You are given a budget of $1,800,000 to invest in projects. Which projects will you select and in what order?
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Chemical Engineering Design
Authors: Gavin Towler, Ray Sinnott
3rd Edition
0128211792, 978-0128211793
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