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How can I solve NPV and PI QUESTION 3 firm is consid considering the following projects, all of which are independen unds are limited to
How can I solve NPV and PI
QUESTION 3 firm is consid considering the following projects, all of which are independen unds are limited to SR2 million only in this capital budgeting pero Available fun will have no sve no capital budget constraints (10 MARKS which are independent of one anotiods Period, but future periods Project Initial Capital Outlay in SR Total Present Value of Future 1,250,000 Net Present Profitability Value 2312500 1.25 ACCEPT /REJECT Index Lecept 500,000 Free Cash Flows 1.562,500 875,000 + 37 Scoop 687,500 -62500 587,500 -97500 besect 750,000 500,000 pots feseat accept 2500, 0.2 secent resea 1-87500dibes sexet acce FILL the shaded areas in the table above with appropriate values (2 marks) ACCORDING TO NPV CRITERIA. which perts would be selected base capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE selected projects according to this ranking. jects would be selected base on the (3 marks) project 312500+ 375oot 87 Soo BD = 775000 2 C. ACCORDING TO PROFITABILITY INDEX (PI) CRITERIA, which projects would be selected base on the capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE for the selected projects according to this ranking. (3 marks) profects 12 St 1.7541175 = 4.175 Step by Step Solution
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