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borteleto borteleto
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Posts: 2477
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5 years ago
You are in charge of one division of Yeti Surplus Inc. Your division is subject to capital rationing. Your division has 4 indivisible projects available, detailed as follows:

ProjectInitial OutlayIRRNPV
12 million18%2,500,000
21 million15%   950,000
31 million10%   600,000
43 million  9%2,000,000

If you must select projects subject to a budget constraint of 5 million dollars, which set of projects should be accepted so as to maximize firm value?
A) Projects 1, 2 and 3
B) Project 1 only
C) Projects 1 and 4
D) Projects 2, 3 and 4
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 42 times
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wrote...
5 years ago
 C
 
borteleto Author
wrote...
5 years ago
Good timing, thanks!
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