11.10

Constraints on borrowing.

Country Farmlands, Inc. is considering the following potential projects for this coming year, but has only$200,000 for these projects:

Project A: Cost $60,000, NPV $4,000, and IRR 11%

Project B: Cost $78,000, NPV $6,000, and IRR 12%

Project C: Cost $38,000, NPV $3,000, and IRR 10%

Project D: Cost $41,000, NPV $4,000, and IRR 9%

Project E: Cost $56,000, NPV $6,000, and IRR 13%

Project F: Cost $29,000, NPV $2,000, and IRR 7%

What projects should Farmlands pick?

What projects should Farmlands pick?

(Select the best responses.)

A. - A, C, D, and E.

B. - B, C, D, and F.

C. - A, B, D, and E.

D. - B, C, D, and E.

E. - C, D, E, and F.