Question $3$

Borghia Pharmaceuticals has $$1$ million allocated for capital expenditures. The opportunity cost of capital for each project is $11\%.$

a$)$ Which of the following projects should the company accept to stay within the $$1$ million budget?

b$)$ How does the budget limit cost the company in terms of its market value?

Project Investment $($$ thousands$)$ NPV

$($$ thousands$)$ IRR

$13006617\mathrm{.}2\%$

$2200-410\mathrm{.}7\%$

$32504316\mathrm{.}6\%$

$41001412\mathrm{.}1\%$

$5100711\mathrm{.}8\%$

$63506318\%$

$74004813\mathrm{.}5\%$