A firm has set a budget constraint of $220,000 on new investments, which cannot be exceeded. Given the following independent investments, which projects should the firm undertake?
Project |
CF0 |
PI |
||
Alpha |
$80,000 |
1.20 |
||
Delta |
$120,000 |
1.13 |
||
Gamma |
$140,000 |
1.10 |
||
Sigma |
$85,000 |
1.15 |
Projects Alpha and Delta |
Projects Alpha and Gamma |
Projects Alpha and Sigma |
Projects Venus and Jupiter |
A firm has set a budget constraint of $220,000 on new investments, which cannot be exceeded. Given the following indepen...