Module19HWSol

# Module19HWSol - Module 19 Chapter 12 D7 a 4 project...

This preview shows pages 1–2. Sign up to view the full content.

Module 19 Chapter 12 D7 a) 4 project portfolios: All do not meet the budget constraint. 3 project portfolios: Only 123 and 134 meet the budget constraint. 2 project portfolios: All meet the budget constraint. 1 project portfolios: All meet the budget constraint. Hence, the total number of feasible portfolios, including do-nothing, is b) 4 project portfolios: All do not meet the budget constraint. 3 project portfolios: All do not meet the budget constraint. 2 project portfolios: Only 24 do not meet the budget constraint. 1 project portfolios: All meet the budget constraint. Hence, the total number of feasible portfolios, including do-nothing, is c) Same as a), except portfolios 134 and 34. Hence number of feasible portfolios is 13 2 = 11. D8) We compute the IRR of the projects and enumerate the list of possible portfolios. Period Project 1 Project 2 Project 3 Project 4 0 -\$322 -\$427 -\$314 -\$398 1 \$178 \$122 \$157 \$118 2 \$228 \$122 \$131 \$184 3 \$278 \$122 \$109 \$183 4 \$328 \$122 \$91 \$117

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

Module19HWSol - Module 19 Chapter 12 D7 a 4 project...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online