Question
You are the CFO of the corporation, and you have three alternative projects A B C 0 -200 -250 -440 1 110 150 125 2
You are the CFO of the corporation, and you have three alternative projects
A | B | C | |
0 | -200 | -250 | -440 |
1 | 110 | 150 | 125 |
2 | 115 | 150 | 375 |
Assume that the discount rate is a 9%.
a) What is the NPV of each project.
b) Which of the three projects would you choose if you can only choose one of them?
c) If you could invest up to 450, which project/s would you choose? (You cannot invest partially in any project)
d) Which is the profitability index for each project? What is the profitability index of your choice in part c?
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
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