Duhe Corporation Is Considering the Following Six Long-Term Projects Only $59,100 Is Available for Investment in These Projects

question 25

Essay

Duhe Corporation is considering the following six long-term projects: $$\begin{array} { l c c } & \text { Net Present Value } & \text { Investment Required } \\\text { Project 1...... } & \$ 23,798 & \$ 14,600 \\\text { Project 2..... } & \$ 20,862 & \$ 17,100 \\\text { Project 3..... } & \$ 19,350 & \$ 15,000 \\\text { Project 4...... } & \$ 30,051 & \$ 18,900 \\\text { Project 5...... } & \$ 21,120 & \$ 17,600 \\\text { Project 6...... } & \$ 18,550 & \$ 10,600\end{array}$$ Only $59,100 is available for investment in these projects.
Required:
a.Determine which projects should be accepted.
b.Determine the total net present value of all of the accepted projects if your plan from part (a)above is adopted.

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Definitions:

Traditional Economic Theory

A broad term for theories that formed the basis of economic thought, focusing on factors like supply, demand, market equilibrium, and the role of government.

Indifference Curve

Curve representing all combinations of market baskets that provide a consumer with the same level of satisfaction.

Price Increase

A rise in the cost of goods or services in the market.

Traditional Theory

This term encompasses theories that rely on established norms and practices, often contrasting with modern or contemporary theories.