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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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