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14. This problem tests your understanding of the chapter appendix. A company is considering the following investment opportunities. Page 282 Investment Initial cost ($ millions)
14. This problem tests your understanding of the chapter appendix. A company is considering the following investment opportunities. Page 282 Investment Initial cost ($ millions) Expected life NPV @ 15% IRR A 5.5 10 yrs $340,000 20% B 3.0 10 yrs $300,000 30% C 2.0 10 yrs $200,000 40% a. If the company's capital budget is large enough to undertake any or all of these investments, and if the investments are independent of one another, which should it undertake? b. If the company's capital budget is large enough to undertake any or all of these investments, and if the investments are mutually exclusive, which should it undertake? c. Considering only these three investments, if the company has a fixed capital budget of $5.5 million, and if the investments are
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