Question

Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investment is not limited (there is no limit on spending)?

Answer 1

Answer:

Answer for the question is given below.

Explanation:

Observing  the  present  worth  of  all  projects ,  it  can  be  seen  that  the present  worth  of  project  B  is  highest  and  that  of  project  E  is  lowest. Project  A  is  discarded  since  its  present  worth  is  negative.  Now  if  there is  no  limit  on  the  initial  investment,  then  it  can be increased to any limit for any project. Hence all the for projects are at equal stake.