The Cooper Electronics Company has developed the following schedule of potential investment projects that may be undertaken during the next 6 months:

Project Cost (in Millions of Dollars) Expected Rate of Return A $ 3.0 20%
B 1.5 22 C 7.0 7 D 14.0 10 E 50.0 12 F 12.0 9 G 1.0 44

a. If Cooper requires a minimum rate of return of 10 percent on all investments, which projects should be adopted?

b. In general, how would a capital budgeting constraint on the available amount of investment funds influence these decisions?

c. How would differing levels of project risk influence these decisions? P=857