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Suppose that a company has six non-mutually exclusive projects to consider for capital investment in table below. The company has only MM$300 available for investment.

Suppose that a company has six non-mutually exclusive projects to consider for capital investment in table below. The company has only MM$300 available for investment. Which investment should be selected considering discount rate of 10%? Use NPV, GRR, and PI analysis. Discuss the results. (GRR is Growth Rate of Return)

Project

0

1

2

3

4

A

- MM$100

+ MM$20

+ MM$40

+ MM$60

+ MM$80

B

- MM$150

- MM$50

+ MM$100

+ MM$100

+ MM$140

C

- MM$60

+ MM$20

+ MM$40

+ MM$40

-

D

- MM$100

+ MM$60

+ MM$60

+ MM$100

-

E

- MM$50

+ MM$20

+ MM$40

+ MM$60

+ MM$40

F

- MM$100

+ MM$30

+ MM$30

+ MM$30

+ MM$30

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