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

QUESTION 3 Analyzing the investment problem shown
QUESTION 3 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 3 4 5 6 Year 1 cost $5,000 $2,500 $3,500 $6,500 $7,000 $4,500 $3,000 Year 2 cost $2,000 $1,500 $2,000 50 $500 $1,500 $0 NPV $ 16,000 $8,000 $10,000 $20,000 $22.000 $12,000 $8,000 Decisions: whether to invest Investment levels 0 0 0 0 0 0 0 Budget constraints Budget Amount invested SO 50 $14.000 $4,500 Objective to maximize Total NPV $0 a. but this combination is not feasible. b. but this combination exceeds the first year budget. cand this feasible combination would yield a value of 532.000. d. is a reasonable balance of low-yield and mid-yield investments

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