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Your company has $100 million available for investment in the following potential investment opportunities: project NPV initial investment A $5 million $15 million B $15
Your company has $100 million available for investment in the following potential investment opportunities:
project | NPV | initial investment |
A | $5 million | $15 million |
B | $15 million | $50 million |
C | $10 million | $10 million |
D | $20 million | $60 million |
E | $12 million | $ 35 million |
Rank the projects based on profitability and identify the projects that should be accepted keeping in view the companys capital budget constraints.
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