As it currently stands, investment 7 in the capital budgeting model in Figure 6.1 has the lowest ratio of NPV to cash requirement, 2.5. Keeping this same ratio, can you change the cash requirement and NPV for investment 7 so that it is selected in the optimal solution? Does this lead to any general insights? Explain.
Figure 6.1
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here