ACCA · Question 11 · Investment Appraisal
Section A
BioGenix is facing single-period capital rationing. It has $5m available to invest and is considering four divisible projects.
Project A: Outlay $2m, NPV $0.6m
Project B: Outlay $3m, NPV $1.2m
Project C: Outlay $1.5m, NPV $0.5m
Project D: Outlay $2.5m, NPV $0.8m
In what order should the projects be ranked to maximize NPV?
Answer options:
B, D, A, C
B, C, D, A
A, C, D, B
C, A, D, B
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