Man Sci Case Study - Hart Venture Capital - I. Case Problem: Hart Venture Capital (HVC) specializes - Studocu
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The net present value takes into account the estimated value of the stock at the end of the three-year period as well as the capital outflows that are necessary during each of the three years.
Using an 8% rate of return, HVC’s financial analysis team estimates that 100% funding of the Security Systems project has a net present value of $1,800,000,
and 100% funding of the Market Analysis project has a net present value of $1,600,000.
The problem faced by HVC is whether to invest in both projects in a certain proportion or to invest in either of the two with the objective of maximizing the net present value
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