O A. $69,000 O B. $80,000 O C. $65,000 $111.000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Use the table for the question(s) below.
Consider the following list of projects:
Project
Investment
NPV
A
$135,000
$6,000
200,000
30,000
20,000
C
125,000
D
150,000
2,000
E
175,000
10,000
75,000
80,000
10,000
G
9,000
200,000
20,000
50,000
4,000
Assume that your capital is constrained, so that you only have $600,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net
present value (NPV) for all the projects you invest in will be closest to
O A. $69,000
2021
O B. $80,000
OC. $65,000
O D. $111,000
Scre
2021-12.
Next
O ctv
w
MacBook Air
DII
DD
80
O00
D00
F9
F10
F8
F7
F6
esc
F4
F5
F2
F3
F1
*
@
23
2$
7
8.
9
1
3
4
O O 0 0
Transcribed Image Text:Use the table for the question(s) below. Consider the following list of projects: Project Investment NPV A $135,000 $6,000 200,000 30,000 20,000 C 125,000 D 150,000 2,000 E 175,000 10,000 75,000 80,000 10,000 G 9,000 200,000 20,000 50,000 4,000 Assume that your capital is constrained, so that you only have $600,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects you invest in will be closest to O A. $69,000 2021 O B. $80,000 OC. $65,000 O D. $111,000 Scre 2021-12. Next O ctv w MacBook Air DII DD 80 O00 D00 F9 F10 F8 F7 F6 esc F4 F5 F2 F3 F1 * @ 23 2$ 7 8. 9 1 3 4 O O 0 0
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