Question: BUDGET CONSTRAIN Select projects from the given portfolio that will maximise overall Net Present Value (NPV) but fit the investment budget of $2M . Set

BUDGET CONSTRAIN

Select projects from the given portfolio that will maximise overall Net Present Value (NPV) but fit the investment budget of $2M .

Set up the problem in Excel and use solver to figure out what projects to abandon.

Portfolio:

BUDGET CONSTRAIN Select projects from the given portfolio that will maximise overall

Calculate projects profitability indices (PI).

Project Investment NPV 1 240 000 250 000 2 780 000 1 050 000 3 30 000 10 000 4 74 000 39 000 5 830 000 1 000 000 6 56 000 90 000 630 000 490 000 110 000 195 000 9 50 000 F 000 00S 10 110 000 150 000

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