Question
The table below lists the independent projects that your company is considering to invest: Project Initial investment (USD) NPV (USD) IRR (%) A 450000 48692
The table below lists the independent projects that your company is considering to invest:
| Project | Initial investment (USD) | NPV (USD) | IRR (%) |
|---|---|---|---|
| A | 450000 | 48692 | 9.03 |
| B | 300000 | 72483 | 10.64 |
| C | 520000 | -48202 | 7.43 |
| D | 130000 | 26545 | 9.88 |
| E | 510000 | 52324 | 8.64 |
| F | 120000 | 33844 | 9.56 |
| G | 450000 | 103995 | 9.94 |
The required return is 8.2 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?
| 121175 | ||
| 99028 | ||
| 75237 | ||
| 101016 | ||
| 48692 |
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Finance For Small And Entrepreneurial Business
Authors: Richard Roberts
1st Edition
0415721008, 978-0415721004
