27. Griffin-Kornberg is reviewing the following projects for next year’s capital program.

Projects A and B are mutually exclusive and so are Projects D and E. Griffin-
Kornberg has a 9% cost of capital and a maximum of $14 million to spend on capital projects next year. Use capital rationing to determine which projects should be included in Griffin-Kornberg’s capital program.

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Project Initial Investment Length in Years $3.0 million 3.5 million ABCDEFG 4.0 million 5.0 million 6.0 million 7.0 million 8.0 million 6574657 Annual Cash Flow $ 719,374 970,934 904,443 1,716,024 1,500,919 1,941,868 1,725,240