Question
Consider the following list of projects: Project Investment NPV A 405,000 18,000 B 600,000 90,000 C 375,000 60,000 D 450,000 6,000 E 525,000 30,000 F
Consider the following list of projects:
| Project | Investment | NPV |
| A | 405,000 | 18,000 |
| B | 600,000 | 90,000 |
| C | 375,000 | 60,000 |
| D | 450,000 | 6,000 |
| E | 525,000 | 30,000 |
| F | 225,000 | 30,000 |
| G | 240,000 | 27,000 |
| H | 600,000 | 60,000 |
| I | 150,000 | 12,000 |
| J | 270,000 | 30,000 |
You are given a budget of only $1,800,000 to invest in projects.
Required: Which projects will you select, in what order will you select them, and why?
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Applied Quantitative Finance
Authors: W.; T. Kleinkow; G. Stahl Hardle
1st Edition
3540434607, 978-3540434603
