A firm with a 13% cost of capital must select the optimal group of projects from those
Question:
a. Calculate the present value of cash inflows associated with each project.
b. Select the optimal group of projects, keeping in mind that unused funds arecostly.
Transcribed Image Text:
NPV at 13% cost of capital Projcct Initial investment $300,000 200,000 100,000 900,000 500,000 100,000 800,000 $ 84,000 10,000 25,000 90,000 70,000 50,000 160,000
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a Project PV Initial Investment Total Investment A 384000 B 210000 C 125000 100000 ...View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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