Shamo Ventures has identified five projects with positive Net Present Value but can raise an amount of
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Question:
- Shamo Ventures has identified five projects with positive Net Present Value but can raise an amount of GHS150,000 in loans from the International Financial Market at a cost to finance these projects in the coming year, 2023. Below are the Net Present Values of the projects:
Project | A | B | C | D | E |
NPV (GHS’000) | 500 | 400 | 350 | 200 | 280 |
Investment @ time 0 (GHS’000) | 90 | 120 | 60 | 40 | 45 |
Required:
Advise the company which project(s) to accept if the projects are:
- independent and divisible
ii) independent and indivisible
iii) mutually exclusive
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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