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Emit Brothers is considering the following projects for the coming year: Project Size ($MM) IRR (%) A 70 12.0 B 125 12.7 C 115 13.2
Emit Brothers is considering the following projects for the coming year:
Project | Size ($MM) | IRR (%) |
A | 70 | 12.0 |
B | 125 | 12.7 |
C | 115 | 13.2 |
D | 125 | 13.0 |
E | 85 | 13.2 |
F | 75 | 12.3 |
G | 90 | 13.5 |
Emit's WACC is 12.5%. Assume that each of the projects is as risky as the firms existing assets, and Project D and Project E are mutually exclusive while the rest are of the projects are independent. If NPVD = $30 million and NPVE = $25 million,and what is the firms optimal capital budgeting for the coming year?
Group of answer choices
$335 million
$420 million
$455 million
$540 million
$495 million
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