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Consider the following set of projects. If the firm only has $210mm in capital to invest, then which project, or projects, should be accepted? Project
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Consider the following set of projects. If the firm only has $210mm in capital to invest, then which project, or projects, should be accepted?
Project
PV of Cash Inflows ($mm)
PV of Cash Outflows ($mm)
A
$ 86.25
$ 75.00
B
$ 80.50
$ 70.00
C
$ 75.00
$ 60.00
D
$ 169.00
$ 135.00
E
$ 100.00
$ 80.00
Projects D and C
Projects D and A
Projects D, C and E
Project D only
Projects E, C and B
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