Question
A firm has the following investment opportunities: Investment NPV IRR Project A $150,000 $30,000 14% Project B $120,000 $20,000 13% Project C $100,000 $25,000 12%
A firm has the following investment opportunities:
|
| Investment | NPV | IRR |
| Project A | $150,000 | $30,000 | 14% |
| Project B | $120,000 | $20,000 | 13% |
| Project C | $100,000 | $25,000 | 12% |
| Project D | $ 10,000 | $ 6,000 | 11% |
If the cost of capital is 10% and the capital budget is limited to $280,000, which project(s) should the firm undertake?
| a. | Projects A, B, and C |
| b. | Projects A and C |
| c. | Projects A and B |
| d. | Projects A, B, and D |
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
