Account problem
akem_k
dis_5b.docx|
Project |
Net Investment |
NPV |
Project |
Net Investment |
NPV |
|
A |
$200,000 |
$22,000 |
F |
$250,000.00 |
$30,000.00 |
|
B |
$275,000 |
$21,000 |
G |
$100,000.00 |
$7,000.00 |
|
C |
$150,000 |
$6,000 |
H |
$200,000.00 |
$18,000.00 |
|
D |
$190,000 |
-$19,000 |
I |
$210,000.00 |
$4,000.00 |
|
E |
$500,000 |
$40,000 |
J |
$250,000.00 |
$35,000.00 |
In your response, complete the following:
· Rank the projects using the profitability index. Considering the limit on funds available, which projects should be accepted?
· Using the NPV, which projects should be accepted, considering the limit on funds available?
· If the available investment funds are reduced to only $1,000,000:
· Does the list of accepted projects change from Part 2?
· What is the opportunity cost of the eliminated $200,000?
