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 2M . 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 3_1_solver_practice.xls. No need to submit this file. Here is the portfolio: Project Investment NPV 125000024000027800001050000330000100004390007400058300001000000656000900007490000630000819500011000095000005000010110000150000 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 +1 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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