Question: I know 5%=i not sure about the rest. Also how u draw a cash diagram out of this? Thank you. 3- Managers from different departments
3- Managers from different departments in Bensen Systems, a large multinational corporation, have offered seven projects for consideration by the corporate office. A staff member for the chief financial officer used key words to identify the projects and then listed them in order of projected rate of return as shown below. If the company wants to grow rapidly through high leverage and uses only 5% equity financing that has a cost of equity capital of 10% and 95% debt financing with a cost of debt capital of 1990, which projects should the company undertake? Project ID Projected ROR, % per Inventory Technology Warehouse Maintenance Products Energy Shipping year 30.0 28.4 21.9 19.5 13.1 9.6 8.2
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