- You Have A 10 Million Capital Budget And Must Make The Decision About Which Investments Your Firm Should Accept For The 1 (97.59 KiB) Viewed 43 times
You have a $10 million capital budget and must make the decision about which investments your firm should accept for the
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You have a $10 million capital budget and must make the decision about which investments your firm should accept for the
You have a $10 million capital budget and must make the decision about which investments your firm should accept for the coming year. The firm's cost of capital is 10 percent. Use the information on the fIVE projects to determine what project(s) your firm should accept on the basis of NPV? Project A Project B Project C Project D Project E Initial CF -4,000,000 -5,000,000 -5,000,000 -10,000,000-6,000,000 Year 1 CF 1,000,000 1,700,000 2,000,000 4,000,000 2,700,000 Year 2 CF 2,000,000 2,700,000 2,500,000 5,000,000 2,700,000 Year 3 CF 3,000,000 3,700,000 3,000,000 6,000,000 2,700,000 Multiple Choice O Projects C, E Projects A, E Project D Projects B, C