AL Rawabi SAOG a diary company based in al buraimi has four independent projects available. Capital needed NPV at time 0 RO. RO. Project 1 10,000 30,000 Project 2 8,000 25,000 Project 3 12,000 30,000 Project 4 16,000 36,000 If the company has RO.32,000(Capital Budget) to invest at time 0, and each project is Indivisible, but none can be delayed, what is the maximum NPV that can be earned? Note: Use PI Method for Ranking the project a. OR.85,000 b. OR.89,500 c. OR.103,000 102 2 Co

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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AL Rawabi SAOG a diary company based in al buraimi has four independent projects available.
Capital needed NPV
at time 0
RO.
RO.
Project 1
10,000
30,000
Project 2
8,000
25,000
Project 3
12,000
30,000
Project 4
16,000
36,000
If the company has RO.32,000(Capital Budget) to invest at time 0, and each project is Indivisible, but none
can be delayed, what is the maximum NPV that can be earned?
Note: Use PI Method for Ranking the project
a. OR.85,000
b. OR.89,500
c. OR.103,000
d. OR.102,250
Transcribed Image Text:AL Rawabi SAOG a diary company based in al buraimi has four independent projects available. Capital needed NPV at time 0 RO. RO. Project 1 10,000 30,000 Project 2 8,000 25,000 Project 3 12,000 30,000 Project 4 16,000 36,000 If the company has RO.32,000(Capital Budget) to invest at time 0, and each project is Indivisible, but none can be delayed, what is the maximum NPV that can be earned? Note: Use PI Method for Ranking the project a. OR.85,000 b. OR.89,500 c. OR.103,000 d. OR.102,250
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