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Net Present Value

If you have 4 projects with the following investment and Net Present Value in what order should you pick the projects.

Project 1: Investment of $160,000 and Net Present Value of $30,000
Project 2: Investment of $120,000 and Net Present Value of $15,000
Project 3: Investment of $110,000 and Net Present Value of $25,000
Project 4: Investment of $200,000 and Net Present Value of $40,000

Please show me how to solve this.

Thank You.

Solution Preview

You should pick projects in descending order of Net Present Value

Project 1: Investment of $160,000 and Net Present Value of $30,000
Project 2: Investment ...

$2.19