You have a capital budget for the coming year of $5,000,000. You also have a list of all potential positive NPV capital projects for the coming year: 

Project A: Initial cost of $1,500,000 and NPV of $250,000

Project B: Initial cost of $2,000,000 and NPV of $200,000

 Project C: Initial cost of $1,750,000 and NPV of $180,000 

Project D: Initial cost of $750,000 and NPV of $60,000 

Project E: Initial cost of $500,000 and NPV of $50,000

 Project F: Initial cost of $900,000 and NPV of $25,000

 Project G: Initial cost of $1,250,000 and NPV of $15,000 Which combination of projects is the best given the constraint that you can spend only up to $5,000,000?

 

Answer rating: 100% (QA)

To determine the best combination of projects given the constraint of a 5000000 capital budget we ne... View the full answer