Solution-Which single project should be invested in based

Which single project should be invested in based on NPV

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Reference no: EM133006693

Question - Dorothea MacKeller has a number of possible projects to invest in. She has been advised by her bank that she has a hard capital ration of $20,000.

She has provided you with the following information:

Year	Project A	Project B	Project C	Project D
0	$(5,000.00)	$(8,000.00)	$(10,000.00)	$(14,000.00)
1	$15,000.00	$6,000.00	$7,000.00	$11,000.00
2	$9,000.00	$5,000.00	$8,000.00	$12,000.00
3	$10,000.00	$11,000.00	$16,000.00	$19,000.00
4	$7,000.00	$12,000.00	$9,000.00	$7,000.00

The discount rate is 18%.

Which combination of projects should they invest in based on profitability index?

Which single project should be invested in based on NPV?

Reference no: EM133006693

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Which single project should be invested in based on NPV

Reference no: EM133006693

Reference no: EM133006693

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