Question
The table below lists the independent projects that your company is considering to invest: Project Initial investment (USD) NPV (USD) IRR (%) A 200000 52131
The table below lists the independent projects that your company is considering to invest:
| Project | Initial investment (USD) | NPV (USD) | IRR (%) |
|---|---|---|---|
| A | 200000 | 52131 | 9.23 |
| B | 410000 | 48192 | 8.95 |
| C | 290000 | -24690 | 7.47 |
| D | 320000 | 75239 | 9.49 |
| E | 510000 | 51693 | 9.24 |
| F | 260000 | 68092 | 9.54 |
| G | 220000 | 49171 | 9.64 |
The required return is 8.1 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?
| 99885 | ||
| 51693 | ||
| 126932 | ||
| 127370 | ||
| 103824 |
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
