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The managers of United Medtronics are evaluating the following four projects for the coming budget period. The firms corporate cost of capital is 14 percent
The managers of United Medtronics are evaluating the following four projects for the coming budget period. The firms corporate cost of capital is 14 percent 
roblem Set 5 Chapter 12- Project Risk Analysis ssigned Problem 5 he managers of United Medtronics are evaluating the following four projects for the com udget period. The firm's corporate cost of capital is 14 percent. Project Cost IRR $15,000 S15,000 S12,000 S20,000 1700 16 1500 13% A) Assuming that all four projects have average risk, what is the firms optimal capital budget?
B) now suppose Medtronic managers want to consider differential risk in the capital budgeting has average risk. What is the firms optimal capital budget when differential risk is considered ?
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