Question

Corporation XYZ is considering the following projects. If their MARR is 15% and they have $165,000 available to spend, which projects should they select?

Project	Investment	Present Worth
A	$50,000	$10,200
B	$35,000	($7,650)
C	$15,000	$8,200
D	$100,000	$6,300

Answer 1

Answer :-

here based on present worth analysis the corporation should invest which has highest present worth value.

=> First of all , they should invest $50000 in project A because it's have highest npv $10200.

=> after that , they should invest $15000 in project C because it's npv is positive $8200

=> and last , they should invest remaining $100000 in project D which has positive npv amount.

here, they should not invest in project B since it will be loss making project because it's npv is negative.