Question: Analyzing the investment problem shown below, one advisor recommended buying a combination of investments 2, 3, and 6. Input data on potential investments Investment 2

Analyzing the investment problem shown below, one
Analyzing the investment problem shown below, one advisor recommended buying a combination of investments 2, 3, and 6. Input data on potential investments Investment 2 5 6 Year 1 cost $5,000 $2.500 $3.500 56,500 57 000 54500 Year 2 cost 33,000 $2.000 $1,500 $2.000 50 $500 $1.500 so NPV 516 000 50.000 $10.000 520.000 522.000 $12.000 50.000 Decisions: whether to invest Investment levels 0 0 0 0 0 0 Budget constraints Amount invested SO SO Budget $14,000 $4.500 Objective to maximize Total NPV SO is a reasonable balance of low-yield and mid-yield investments. but this combination is not feasible. but this combination exceeds the first year budget. and this feasible combination would yield a value of $32,000

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