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The following table gives the available projects (in $millions) for a firm. ABCDEFG 902060501504020 Initial investment140706510303210 NPV The firm has a limit of $210 million

  1. The following table gives the available projects (in $millions) for a firm.

ABCDEFG 902060501504020 Initial investment140706510303210 NPV

The firm has a limit of $210 million to invest, what is the maximum NPV the company can obtain?

Required:

  1. Determine the product portfolio, which can give a maximum NPV to the company.
  2. How much maximum NPV the firm can obtain through the portfolio you determined in (a) above?
ABCDEFG 902060501504020 Initial investment140706510303210 NPV

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