高级财务管理习题（PDF).pdfVIP

高级财务管理习题答案 1-6.In order to graph the production opportunity set, first order the investments by their rate of return and sum the total investment required to undertake the first through the ith project. This is done below. One Plus the Outlay for the Project Rate of Return ith Project Sum of Outlays D 1.30 $3,000,000 $3,000,000 B 1.20 1,000,000 4,000,000 A 1.08 1,000,000 5,000,000 C 1.04 2,000,000 7,000,000 The production opportunity set plots the relationship between resources utilized today (i.e., consumption foregone along the C0 axis) and the extra consumption provided at the end of the investment period. For example, if only project D were undertaken then $3 million in current consumption would be foregone in order to receive 1.3 ($3 million) $3.9 million in end-of-period consumption. This is graphed below in Figure S1.7. Figure S1.7 If we aggregate all investment opportunities then $7 million in consumption could be foregone and the production opportunity set looks like Figure S1.8. The answer to part b of the question is found by drawing in a line with a slope of 1.1 and finding that it is tangent to point B. Hence the optimal production decision is to undertake projects D and B. The present value of this decision is C W 1 C 0 0 1r 5.1 3 $7.6364 milli