Example 12.1
Use the information below to answer the following questions.
The Schroeder Business has identified the investment proposals shown below as acceptable.
$$\begin{array} { c c c }
\begin{array} { c }
\text { Investment } \
\text { Proposal }
\end{array} & \begin{array} { c }
\text { Required } \
\text { Investment }
\end{array} & \begin{array} { c }
\text { Net Present } \
\text { Value }
\end{array} \
\hline\text { A } & \$ 20000 & \$ 10000\
\text { B } & 50000 & 16000 \
\text { C } & 30000 & 8000 \
\text { D } & 30000 &7000 \\
\text { E } & 20000 &11000 \
\end{array}$$
-Refer to Example 12.1. Assuming the business can invest up to a maximum of $100 000, which proposals should be chosen?

Question

Example 12.1
Use the information below to answer the following questions.
The Schroeder Business has identified the investment proposals shown below as acceptable.
 $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Investment } \
\text { Proposal }
\end{array} & \begin{array} { c } 
\text { Required } \
\text { Investment }
\end{array} & \begin{array} { c } 
\text { Net Present } \
\text { Value }
\end{array} \
\hline\text { A } & \$ 20000 & \$ 10000\
\text { B } & 50000 &  16000  \
\text { C } & 30000 & 8000 \
\text { D } & 30000 &7000 \\
\text { E } & 20000 &11000 \
\end{array}$$
-Refer to Example 12.1. Assuming the business can invest up to a maximum of $100 000, which proposals should be chosen?

Quizplus · Accepted Answer

don't have to invest whole $100 000, and choice of A, B and E gives highest NPV combination

Example 12 -Refer to Example 12