Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote. Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutuallyexclusive.What is the present worth for the optimum portfolio? $x Your answer is incorrect.What is the IRR for the optimum portfolio?17 % Suppose your own consulting firm has been doing well, and you believe it is time to add a new, related area of engineering services. Todo so, you have identified the following 5 independent, indivisible, equal-lived investments, each of which guarantees you can exit itafter 4 years and have your initial investment returned to you. Each year, you receive an annual return as noted below. Your MARR is10%, and you have $250,000 to invest.Investment24Initial Investment $45,000 $60,000 $85,000 $100,000 $75.000Annual Return$4,000 $7,000$9,000 $12.000 $11.000

Higher the value of NPV, better is the investment. And at the same time, NPV must be greater than 0…

Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually exclusive. What is the present worth for the optimum portfolio? $ x Your answer is incorrect.

Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually exclusive. What is the present worth for the optimum portfolio? $ x Your answer is incorrect.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10PA: The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000,...

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Concept explainers

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.

Question

Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.

Again, in addition to the original problem statement, you now believe that Investments 4 and 5 should be considered mutually
exclusive.
What is the present worth for the optimum portfolio? $
x Your answer is incorrect.
What is the IRR for the optimum portfolio?
17 %

Suppose your own consulting firm has been doing well, and you believe it is time to add a new, related area of engineering services. To
do so, you have identified the following 5 independent, indivisible, equal-lived investments, each of which guarantees you can exit it
after 4 years and have your initial investment returned to you. Each year, you receive an annual return as noted below. Your MARR is
10%, and you have $250,000 to invest.
Investment
2
4
Initial Investment $45,000 $60,000 $85,000 $100,000 $75.000
Annual Return
$4,000 $7,000
$9,000 $12.000 $11.000

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