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Q) The following independent projects are under consideration: Project Initial investment PV of the cash flows A 100 120 B 150 180 C 200 220
Q) The following independent projects are under consideration:
Project | Initial investment | PV of the cash flows |
A | 100 | 120 |
B | 150 | 180 |
C | 200 | 220 |
D | 400 | 320 |
E | 10 | 30 |
F | 280 | 305 |
a) Rank the projects in terms of NPV and PI
b) If the capital budget is 600, determine which projects should be approved
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