[alazees]

Thank you so much for your clear and crispy answer.

[alazees]

I tried this problem as my understanding with the help of your mentoring as above but, I couldn’t get the answer. Please help me out to resolve it.

Project NPV PI Rank $60,000 distributed
as investment
A 5,720.24 1.1144 3 Nil
B 3,316.16 1.1184 2 30,000
C 4,403.38 1.468 1 30,000

After distributing the given investment,
Project C NPV = $-25,596.62
Project B NPV = $-26,683.84

So, the NPV is $-52,280.46 (Negative).

Note & Questions:

1. I distributed the investment amount of $60,000 by rank to C is $30,000 (it became 60,000) & to B is $30,000 (it became $58,000) and no balance available for the project A.

2. The total investments of any project is not exceeded $60,000.

3. Why some of the cash inflows are reflecting as negative? What does it mean actually?

Thanks a lot,

[alazees]

Dear John, I really appreciate for your effort, undoubtedly you are very helpful with your swift and clear responses. All of my questions were answered but I tried to post under the title “My doubts in Financial Management” 3 days back unfortunately it showed an error due to some technical issues. Let me post again.

Thanks a lot,

[alazees]

Thank you so much John. It is very clear.

[alazees]

Dear, could you please process my above request? I gave it 3 days ago.

Thanks a lot,

[alazees]

Thank you so much.

[alazees]

Thanks a lot Mr. John. Really you are god’s gift to us. I was really breaking my head for several days. Thank you so much for your clear and crispy answer.

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