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Capital-budget combination calculator

Find the highest sum of entered NPVs among combinations whose initial costs fit the stated budget.

Omni Finance AcademyBy Omni Finance Academy
Highest entered total NPV within the model
64
Initial cost of that combination
100
Unused initial budget
0
Feasible combinations including the empty choice
5

Combination: B, C. The search assumes independent, indivisible projects and additive entered NPVs; dependencies and future-period budgets are outside this model.

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Enter costs and already-computed NPVs

Use one line per project: label, initial cost, NPV. Labels must be distinct and costs positive. The tool uses your entered NPVs; it does not forecast them from sales or compute a required return. Use the same currency scale and compatible valuation basis throughout.

Keep the feasible-set assumptions visible

The model assumes whole independent projects, additive values and one initial budget. Dependencies, mutually exclusive groups, financing choices and future-period budgets are not represented. The empty set is available, so negative-value proposals are not automatically included.

Check the original counterexample

Budget 100 with A costing 60 and NPV 40, B costing 50 and NPV 32, and C costing 50 and NPV 32 produces B + C, total NPV 64, cost 100. A has the higher ratio but does not produce the highest feasible combination value.

Read a returned combination within its scope

The bounded search checks every subset. When values tie, it retains a lower-cost combination; equal-value/equal-cost ties can have more than one solution. The returned model result is not a recommendation that omitted constraints should be ignored.

Further references