Question
If management imposes a limit of $500,000 on capital investments, which of the following project combinations should it accept. A - Initial Cash Outlay ($)
If management imposes a limit of $500,000 on capital investments, which of the following
project combinations should it accept.
A - Initial Cash Outlay ($) = 100,000 Net Present Value ($) = 12,000, Internal Rate of Return (%) = 12
B- Initial Cash Outlay ($) = 150,000 Net Present Value ($) = 14,000 Internal Rate of Return (%) = 13.5
C- Initial Cash Outlay ($) = 200,000 Net Present Value ($) = 25,000 Internal Rate of Return (%) = 11.1
D- Initial Cash Outlay ($) = 200,000 Net Present Value ($) = 26,000 Internal Rate of Return (%) = 12.2
E - Initial Cash Outlay ($) = 300,000 Net Present Value ($) = 35,000 Internal Rate of Return (%) = 12.7
F - Initial Cash Outlay ($) = 300,000 Net Present Value ($) = 38,000 Internal Rate of Return (%) = 12.5
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