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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. Which projects will you select, in what order will you select them, and why? To use as much as the budget and get a higher total NPV, how will you change your answer?
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