Use the Table for the Question(s) Below

question 71

Multiple Choice

Use the table for the question(s) below.
Consider the following list of projects:

-Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects you invest in will be closest to ________.

• A) $111,000
• B) $69,000
• C) $80,000
• D) $58,000

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Definitions:

COGS

Cost of Goods Sold; the direct costs associated with the production of goods sold by a company, including materials and labor.

Revenue Forecast

An estimate of the amount of money a company will generate from sales in a future period.

Cost Ratio

The measure of the costs associated with a financial transaction or an investment, relative to its benefits or returns.

Planning Assumptions

Presumptions or hypotheses used as a base for strategic planning and decision making within an organization.