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

question 21

Essay

Duhe Corporation is considering the following six long-term projects: $\begin{array}{cc}&\text { Net Present Value } & \text { Investment Required } \\\text { Project } 1&\$ 23,798 & \$ 14,600 \\\text { Project } 2&\$ 20,862 & \$ 17,100 \\\text { Project } 3&\$ 19,350 & \$ 15,000 \\\text { Project } 4&\$ 30,051 & \$ 18,900 \\\text { Project } 5&\$ 21,120 & \$ 17,600 \\\text { Project } 6&\$ 18,550 & \$ 10,600\end{array}$ 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:

Profit and Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Comparative Purposes

For purposes of comparison, often to analyze differences or similarities between two or more items or situations.

External Data

Information that originates outside the organization and is used for analysis or decision making.

Economic Analyses

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.