Question
Sunshine Laser Manufacturing is considering the following projects. All projects are independent and last one year. The appropriate cost of capital for all projects is
Sunshine Laser Manufacturing is considering the following projects. All projects are independent and last one year. The appropriate cost of capital for all projects is 10%. The firm has $2,500 available to spend on capital projects. Select ALL the projects that the firm should undertake, given the information below and the budget constraint.
| Project | Cost | NPV | IRR | PI |
| A | $ 500 | $ 200 | 40% | 1.40 |
| B | 1,000 | 300 | 30% | 1.30 |
| C | 750 | 140 | 19% | 1.19 |
| D | 35 | 20 | 57% | 1.57 |
| E | 200 | -60 | -30% | 0.70 |
| F | 400 | 85 | 21% | 1.21 |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
