Consider the following list of projects:

Project	Investment	VAN
A	135.000	6,000
B	200,000	30,000
C	125,000	20,000
D	150.000	2,000
mi	175.000	10,000
F	75,000	10,000
GRAMS	80.000	9,000
H	200,000	20,000
I	50,000	4,000

a) Assuming that your capital is limited, which investment tool should you use to determine the correct investment decisions?

b) Assuming that your capital is limited, in which project should you invest first? Because? Show all calculations to receive full credit.

c) Assuming your capital is limited, what is the fifth project you should invest in? Show all calculations to receive full credit.

d) Assuming your capital is limited, so you only have $600,000 available to invest in projects, which projects should you invest in and in what order? 

Explain and show all calculations .

Answer rating: 100% (QA)

a Profitability Index should be used if the Investment is a constraint ie that Project should be inv... View the full answer