Given an Array of Proposals with various IRRs, and limited Capital Funds, what projects would you accept when applying Capital Funds Allocation Flowchart?

This process has been described in detail in a previously shared Excel Spreadsheet file. You are expected to follow that process and sustain an accurate Capital Funds New Balance so that each new proposal must pass the IRR standard AND fit within the capacity of the Capital Funds New Balance limitation.

Please Note: All the Capital Budget Proposals are defined as complete proposals. Managers do not have the liberty of accepting just a part of a proposal. For example, if an acceptable proposal requires $5,000,000 in Capital and the Capital Funds New Balance is $4,500,000, management must pass on that proposal and choose the next acceptable proposal that requires less than $4,500,000. Thats the limitation and the impact of the Capital Budget Allocation Process.

The Tyndell Corporation has allocated $52,000,000 for Capital Projects this year. You must review these proposals and allocated the Capital Funds according to the Flowchart Process. Tyndell uses the IRR ranking system with a THRESHOLD RATE OF 15%.

Please complete this report of your decisions:

THRESHOLD IRR = 15%

INITIAL CAPITAL FUNDS BALANCE = $52,000,000

FUNDED PROJECTS ARE: ________________________________________________________________________________

UNFUNDED, BUT ACCEPTABLE PROPOSALS ARE: __________________________________________________

REJECTED PROPOSALS ARE: ___________________________________________________________________________

CAPITAL FUNDS ALLOCATED = $______________________________

CAPITAL FUNDS REMAINING = $_______________________________

HERE'S THE LIST OF PROPOSALS THAT MUST BE CONSIDERED AND RANKED: INTERNAL RATE OF RETURN (IRR) PROJECT NUMBER CAPITAL REQUEST STRATEGIC FIT PRODUCTION 1175 $7,200,000 | 22.40% ROBOT 221 $4,500,000 | 11.50% MANDATORY EXPAND WAREHOUSE 3303 $4,000,000 | 14.80% NEW COMPUTER SYSTEM 1710 $6,200,000 | 16.60% 2121 $9,000,000 | 18.70% NEW FACTORY NEW PRODUCT DEVELOPMENT 3757 $6,500,000 | 22.00% RENOVATION TO OFFICE BUILDING 4295 $8,250,000 | 24.00% 318 $6,400,000 | 33.00% NEW TRUCKS 2520 $7,500,000 | 7.80% MANDATORY 314 $4,800,000 | 28.00% | DIVERSIFICATION TOTAL $64,350,000