Question
XYZ Inc. has $800,000 available for investment in the following 6 projects. Determine which projects should be selected to stay within the budget and calculate
XYZ Inc. has $800,000 available for investment in the following 6 projects. Determine which projects should be selected to stay within the budget and calculate the total NPV of the selected projects. The cost of capital is 10%.
Project | Investment ($thousands) | NPV ($thousands) | IRR (%) |
1 | 250 | 45 | 12.0 |
2 | 300 | 50 | 13.0 |
3 | 150 | 20 | 11.0 |
4 | 100 | 15 | 10.5 |
5 | 200 | 30 | 12.5 |
6 | 400 | 60 | 14.0 |
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
16th edition
133439275, 133439274, 9780133819014 , 978-0133439274
