15. Borghia Pharmaceuticals has $1 million allocated for capital expenditures. Which of the following projects should the company accept to stay within the $1 million budget? How much does the budget limit cost the company in terms of its market value? The opportunity cost of capital for each project is 11%.

Project Investment

($ thousands)

NPV

($ thousands)

IRR (%)

1 300 66 17.2 2 200 4 10.7 3 250 43 16.6 4 100 14 12.1 5 100 7 11.8 6 350 63 18.0 7 400 48 13.5