Question
The following table lists the results of a capital budgeting analysis for smaller nine projects Truman may consider in the future. The firm uses an
The following table lists the results of a capital budgeting analysis for smaller nine projects Truman may consider in the future. The firm uses an 8% required rate of return for all of them. The projects are all mutually exclusive and Truman Inc. has enough resources to finance simultaneously no more than three projects. Which project(s) should Truman choose (if any)? Why?
| Project | IRR | PI | NPV |
| A | 10.3% | 1.18 | $47 |
| B | 8.7% | 1.25 | $324 |
| C | 17.0% | 1.26 | $40 |
| D | 6.8% | 0.92 | - $16 |
| E | 12.5% | 1.13 | $210 |
| F | 4.5% | 1.14 | $360 |
| G | 7.2% | 0.76 | - $115 |
| H | 8.1% | 1.02 | $215 |
| I | 16.8% | 1.35 | $50 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
6th Edition
1599180219, 978-0139043437
