Question
The table below lists the independent projects that your company is considering to invest: Project Initial investment (USD) NPV (USD) IRR (%) A 400000 51839
The table below lists the independent projects that your company is considering to invest:
| Project | Initial investment (USD) | NPV (USD) | IRR (%) |
|---|---|---|---|
| A | 400000 | 51839 | 13.11 |
| B | 290000 | 74436 | 13.77 |
| C | 190000 | 54675 | 13.65 |
| D | 370000 | -34929 | 11.25 |
| E | 320000 | 93913 | 15.38 |
| F | 570000 | 83888 | 13.43 |
| G | 200000 | 43561 | 15.08 |
The required return is 12.0 percent. If there is an investment budget ceiling of $1,000,000, what is the total net present value of investment opportunuties missed (the sum of NPVs of the feasible projects that your company couldn't invest) due to budget limit?
| 51839 | ||
| 126275 | ||
| 129111 | ||
| 135727 | ||
| 106514 |
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Globalization Gating And Risk Finance
Authors: Unurjargal Nyambuu, Charles S. Tapiero
1st Edition
1119252652, 978-1119252658
