2. Venture capital firm JD is trying to determine in which of 10 projects it should...

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2. Venture capital firm JD is trying to determine in which of 10 projects it should invest. It knows how much money is available for investment each of the next N years, the NPV of each project, and the cash required by each project during each of the next N years (see Table 52). a Determine the projects in which JD should invest. b Determine which of the 10 projects should be selected. Each project requires cash investment during the next three years. During year 1, $80 million is available for investment. During year 2, $60 million is available for investment. During year 3, $70 million is available for investment. (All figures are in millions of dollars.) TABLE 52 Investment ($ Million) Year 1 - 63 Project 1 2 3 4 5 6 7 8 9 10 9 12 15 18 21 24 27 30 35 Year 2 3 5 7 9 11 13 15 17 19 21 Year 3 5 7 9 12 12 14 16 11 20 24 NPV 20 30 40 50 60 70 80 90 100 130 322 2. Venture capital firm JD is trying to determine in which of 10 projects it should invest. It knows how much money is available for investment each of the next N years, the NPV of each project, and the cash required by each project during each of the next N years (see Table 52). a Determine the projects in which JD should invest. b Determine which of the 10 projects should be selected. Each project requires cash investment during the next three years. During year 1, $80 million is available for investment. During year 2, $60 million is available for investment. During year 3, $70 million is available for investment. (All figures are in millions of dollars.) TABLE 52 Investment ($ Million) Year 1 - 63 Project 1 2 3 4 5 6 7 8 9 10 9 12 15 18 21 24 27 30 35 Year 2 3 5 7 9 11 13 15 17 19 21 Year 3 5 7 9 12 12 14 16 11 20 24 NPV 20 30 40 50 60 70 80 90 100 130 322