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please really need help with these Problem 9 The following table gives the available projects (in $millions) for a firm. ABCDEFG 5.0 4.0 5.0 1.0
please really need help with these
Problem 9
The following table gives the available projects (in $millions) for a firm.
ABCDEFG 5.0 4.0 5.0 1.0 2.0 7.0 8.0 Initialinvestment 1.5 -0.5 1.0 0.5 0.5 1.0 1.0 NPV
The firm has only 20 million to invest. What is the maximum NPV that the company can obtain?
A. 3.5 B. 4.0 C. 4.5 D. 5.0 E. 5.5
Problem 10
What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16%?
A. 0.15 B. 0.22 C. 0.35 D. 0.42 E. 0.55
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