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MNO Ltd. has a total budget of $750,000 for capital expenditures. The company is considering the following projects: Project X requiring $250,000 with an NPV

MNO Ltd. has a total budget of $750,000 for capital expenditures. The company is considering the following projects: Project X requiring $250,000 with an NPV of $30,000 and an IRR of 12%; Project Y requiring $150,000 with an NPV of -$5,000 and an IRR of 8%; Project Z requiring $200,000 with an NPV of $25,000 and an IRR of 11%; Project W requiring $100,000 with an NPV of $10,000 and an IRR of 10%; and Project V requiring $50,000 with an NPV of $5,000 and an IRR of 9%. Decide which combination of projects should be accepted to maximize the total NPV while staying within the budget. Discuss the influence of the opportunity cost of capital on this decision.

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