Question: data analysis A company has nine projects under consideration. The net present value (NPV) added by each project and the capital required by each project
A company has nine projects under consideration. The net present value (NPV) added by each project and the capital required by each project during the next two years is shown in the following table. (All numbers are in millions.) For example, Project 1 will add $14 million in NPV and require expenditures of $12 million during Year 1 and $3 million during Year 2. During Year 1,$50 million in capital is available for projects, and $20 million is available during Year 2. (a) If we can't undertake a fraction of a project but must undertake either all or none of a project. What is the maximum NPV? million (b) Suppose that if Project 4 is undertaken, Project 5 must be undertaken What is the maximum NPV? million
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
