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NPV and Profitability Index A company finds the following available projects: table [ [ Project , Present Value of Benefits,Initial Investment ] , [
NPV and Profitability Index
A company finds the following available projects:
tableProjectPresent Value of Benefits,Initial InvestmentABCD
The net present value NPV of each project is given as follows:
Present value benefits Initial invesstment.
a Suppose the company has no limit to the available funds today. Which projects should the company undertake based on NPV
b Suppose the company has a limit in its fund: it can spend only up to $ Which projects should the company undertake?
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