Question
The CFO of your company has determined that the firms capital investment budget will be limited to $3,000,000 for the upcoming year. Unfortunately, this amount
The CFO of your company has determined that the firms capital investment budget will be limited to $3,000,000 for the upcoming year. Unfortunately, this amount is not sufficient to cover all of the independent, indivisible and positive NPV projects available to the firm.
Project D & H are mutually exclusive.
| Project | NPV | Cost (Initial Investment) |
| A | $ 72,658.00 | $ 628,200.00 |
| B | $ 36,418.00 | $ 352,100.00 |
| C | $ 212,150.00 | $ 1,245,600.00 |
| D | $ 70,925.00 | $ 814,300.00 |
| E | $ 11,400.00 | $ 124,500.00 |
| F | $ 56,842.00 | $ 985,000.00 |
| G | $ 93,600.00 | $ 2,356,400.00 |
| H | $ 65,350.00 | $ 226,900.00 |
| I | $ 48,842.00 | $ 1,650,000.00 |
| J | $ 39,815.00 | $ 714,650.00 |
Using the Solver, determine which of the above projects should be included in the budget.
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Managerial Finance In A Canadian Setting
Authors: X. Lusztig, X. Schwab
4th Edition
0409806021, 1483106330, 9780409806021, 9781483106335
