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Warehouse Ltd . is a highly geared company that wishes to expand its operations. Six possible capital investments have been identified, but the company only

Warehouse Ltd. is a highly geared company that wishes to expand its operations. Six possible capital investments have been identified, but the company only has access to a total of $620,000. The projects may not be postponed until a future period. After the projects end, it is unlikely that similar investment opportunities will occur.
Expected net cash flows (including residual values) are:
Project
Investment
$
NPV
$
A
246,000
6,350
B
180,000
1,882
C
175,000
(2,596)
D
180,000
8,356
E
180,000
5,490
F
150,000
4,993
Plan the best possible course of action to maximize NPV rank the projects accordingly.
Question 3Answer
a.
E,D,F,C,B,A
b.
F,D,E,B,C,A
c.
D,F,E,A,B,C
d.
A,B,C,D,E,F

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