Question: Your task is to choose projects from the given portfolio that will maximize overall Net Present Value ( NPV ) but fit the investment budget
Your task is to choose projects from the given portfolio that will maximize overall Net Present Value NPV but fit the investment budget of M Set up the problem in Excel and use solver to figure out what projects to abandon. if you dont feel confident how to set up the problem in Excel or how to use solver, practise with solverpractice.xls No need to submit this file. Here is the portfolio: Project Investment NPV Calculate projects profitability indices PI PI in commonly used to rank investment opportunities. since NPV already contains initial investment, the formula would be PI NPV Investment Sort the projects by PI Are projects with lowest PI are abandoned? Why? Provide your answer in a short comment. you might want to play with the model manually to understand why.
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