Homework Answers
26]
With $170 million to invest, the investment will be made in the projects with the highest NPV.
The highest NPV is Project A. Amount invested = $90 million. NPV = $140 million.
The next highest NPV is Project B. Amount invested = $20 million. NPV = $70 million.
The next highest NPV is Project C. Amount invested = $60 million. NPV = $65 million.
Total investment = $90 million + $20 million + $60 million = $170 million.
Total NPV = $140 million + $70 million + $65 million = $275 million.
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