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Homework: Homework Set 4 Question 20, P11-34 (si.. Paris HW Score: 19.17%. 9.68 of 50 points Points: 0 of 2 O Save Capital rationing-NPV approach
Homework: Homework Set 4 Question 20, P11-34 (si.. Paris HW Score: 19.17%. 9.68 of 50 points Points: 0 of 2 O Save Capital rationing-NPV approach Afim with a 13.5% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $0.90 milion. Project C D E F Initial Investment $400,000 300,000 100,000 600,000 500.000 100.000 NPV at 13.5% cost of capital $89,000 7,000 15,000 95,000 71,000 47,000 167,000 700.000 A. Calculate the present value of cash Innows associated with each project b. Secot the optimal group of projects. Korping in mind that unused funds are costly. a. Calculate the present value of cash nows associated with each project The present value of cash inflows for project Ais $. (Round to the nearest dolar.)
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