Computation of npv and selection of project


Question: A Biotech Company is evaluating several development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a broad variety of staffing needs, the company has also estimated the number of research scientists required for each development project [all cost values are given in millions of dollars]. Assume that Biotech has a total capital budget of 60 million dollar. How should it prioritize these projects?

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Finance Basics: Computation of npv and selection of project
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