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QUESTION 4 Emo Incorporated is reviewing the following projects for next year's capital program Project Initial Length Annual Investment in Years Cash Flow A $3.0

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QUESTION 4 Emo Incorporated is reviewing the following projects for next year's capital program Project Initial Length Annual Investment in Years Cash Flow A $3.0 million 6 $719,374 B 3.5 million 5 970,934 4.0 million 7 904,443 D 5.0 million 4 1,716,024 E 6.0 million 6 1.500,919 F 7.0 million 5 1,941,868 8.0 million 7 1.725,240 Projects A and B are mutually exclusive and so are Projects D and E. Griffin-Komberg has 10.5% cost of capital and a maximum of $14 million to spend on capital projects next year. Use capital rationing to determine which projects should be included in Emo's capital program, A Project A B. Project B D C Project D. Project D E. Project E OF. Project F G. Project G

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