Question
Consider the following list of projects: Project Investment VAN A 135.000 6,000 B 200,000 30,000 C 125,000 20,000 D 150.000 2,000 mi 175.000 10,000 F
Consider the following list of projects:
Project | Investment | VAN |
A | 135.000 | 6,000 |
B | 200,000 | 30,000 |
C | 125,000 | 20,000 |
D | 150.000 | 2,000 |
mi | 175.000 | 10,000 |
F | 75,000 | 10,000 |
GRAMS | 80.000 | 9,000 |
H | 200,000 | 20,000 |
I | 50,000 | 4,000 |
a) Assuming that your capital is limited, which investment tool should you use to determine the correct investment decisions?
b) Assuming that your capital is limited, in which project should you invest first? Because? Show all calculations to receive full credit.
c) Assuming your capital is limited, what is the fifth project you should invest in? Show all calculations to receive full credit.
d) Assuming your capital is limited, so you only have $600,000 available to invest in projects, which projects should you invest in and in what order?
Explain and show all calculations .
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
a Profitability Index should be used if the Investment is a constraint ie that Project should be inv...Get Instant Access to Expert-Tailored Solutions
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