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Question 2 Adams Corporation has developed the following schedule of potential investment projects that may be undertaken during the next 6 months [10 Marks] Cost
Question 2 Adams Corporation has developed the following schedule of potential investment projects that may be undertaken during the next 6 months [10 Marks] Cost (Millions of rands) Expected Rate of Return Project 3 00 1 50 7 00 14 00 50 00 12 00 1 00 20 10 12 Required: 21 If Adams Corporation requires a minimum rate of return of 10 percent on al nvestments, which 22 In general, how would a capital budgeting constraint on the available amount of investment 23 How would differing levels of project risk influence these decisions? project/s should be adopted? Explain funds influence these decisions
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