Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investment is not limited (there is no limit on spending) ?

Question

Christina

Business

9 May, 04:51

Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investment is not limited (there is no limit on spending) ?

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Answers (1)

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Lexie Sharp · Answer 1

Answer for the question is given below.

Explanation:

Observing the present worth of all projects, it can be seen that the present worth of project B is highest and that of project E is lowest. Project A is discarded since its present worth is negative. Now if there is no limit on the initial investment, then it can be increased to any limit for any project. Hence all the for projects are at equal stake.