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A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are mutually exclusive and Projects 3, 4, and 5 are independent. The
A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are mutually exclusive and Projects 3, 4, and 5 are independent. The projects are listed with their returns. Assuming the firm's cost of capital is 11%, a ranking of the projects on the basis of their returns from the best to the worst according to their acceptability to the firm would be: 4, 1, 2,5, and 3. 3, 2,5, 1, and 4. 4,1 .and 2. 4, 1,5, and 3. 4,1, and 5
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