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Finance Co. is currently working on three large scale projects - A. B. and C. Each project requires investors to make four investments: a down
Finance Co. is currently working on three large scale projects - A. B. and C. Each project requires investors to make four investments: a down payment now, and additional capital over the next three years as shown below: Investment Capital Requirements (Smillion) Project Timeline Project A Project B Project Year o 20 30 40 Year 1 50 30 60 Year 2 70 30 30 Year 3 30 30 60 Net Present Value 40 50 80 The company currently has $25 million of capital available to invest in the project, with an additional capital of 530 million to become available after year 1 and year 2 each, and another 550 million to be available after three years. Finance Co. would like to know the participation share that they should invest in each of the three projects to maximize the total net present value. What is the total capital required to complete Project C? 5 million
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