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Marginal analysis and capital budgeting decisions. A company faces the following schedule of potential investment projects ( all assumed to be equal risk ) .
Marginal analysis and capital budgeting decisions. A company faces the following schedule of potential investment projects all assumed to be equal risk
Use marginal analysis to decide which projects should NOT be undertaken?
tableProjecttableInvestmentRequired $milliontableExpected Rate ofReturn tableCumulativeInvestmentABCDEFGHI
The following is the cost of acquiring the funds needed to finance these investment projects.
tableBlock of funds $ millionCost of Capital Cumulative Funds RaisedFirst Next Next Next Next
F and G
and
and I
GI
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