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Doofenshmirtz Evil Incorporated has eight different projects that it can invest money in over the next 8 years. The company wants to invest in the
Doofenshmirtz Evil Incorporated has eight different projects that it can invest money in over the next 8 years. The company wants to invest in the projects that maximize its combined NPV given the constraints of its capital budget. Assume that each opportunity requires full investment or zero investment and that the company's cost of capital is 17%. Use Solver to determine how the company should invest. You should assume that surplus funds will grow at the cost of capital. (20 points total) Hint: For "Decision to Invest" you should use 0 to indicate no investment and 1 to indicate full investment. Decision to Invest Doofenshmirtz Evil Incorporated has eight different projects that it can invest money in over the next 8 years. The company wants to invest in the projects that maximize its combined NPV given the constraints of its capital budget. Assume that each opportunity requires full investment or zero investment and that the company's cost of capital is 17%. Use Solver to determine how the company should invest. You should assume that surplus funds will grow at the cost of capital. (20 points total) Hint: For "Decision to Invest" you should use 0 to indicate no investment and 1 to indicate full investment. Decision to Invest
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