Question
The table below lists the independent projects that your company is considering to invest: Project Initial investment (USD) NPV (USD) IRR (%) A 270000 70101
The table below lists the independent projects that your company is considering to invest:
| Project | Initial investment (USD) | NPV (USD) | IRR (%) |
|---|---|---|---|
| A | 270000 | 70101 | 17.47 |
| B | 420000 | 62864 | 15.77 |
| C | 300000 | 65311 | 15.78 |
| D | 600000 | -48521 | 12.64 |
| E | 510000 | 52329 | 14.66 |
| F | 200000 | 54870 | 15.66 |
| G | 230000 | 61652 | 17.19 |
The required return is 13.8 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?
| 115193 | ||
| 117640 | ||
| 122430 | ||
| 52329 | ||
| 135412 |
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The Handbook Of Investing In Todays Financial Markets
Authors: Alessandro De Cristofaro
1st Edition
1070350931, 978-1070350936
