Question
You are in charge of one division of Inc. Your division is subject to capital rationing. Your division has 4 indivisible projects available, detailed as
You are in charge of one division of Inc. Your division is subject to capital rationing. Your division has 4 indivisible projects available, detailed as follows: If you must select projects subject to a budget constraint of 4 million dollars, which set of projects should be accepted so as to maximize firm value?
| Project | Initial Outlay | IRR | NPV |
| 1 | $2 million | 18% | $2,500,000 |
| 2 | 1 million | 15% | 950,000 |
| 3 | 1 million | 10% | 600,000 |
| 4 | 1 million | 9% | 1,000,000 |
| Projects 1, 2 and 4 | ||
| Projects 1 and 4 | ||
| Project 1 and 2 | ||
| Projects 1, 2, and 3 |
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Managing Currency Options In Financial Institutions
Authors: Yat-Fai Lam, Kin-Keung Lai
1st Edition
1138778052, 978-1138778054
