. The ZeeBee corporation has the following list of potential projects that could be undertaken throughout the next year:

Project Initial Investment Annual Cash Flows Project Life (Years)

A $1,700,000 $250,000 10

B $2,400,000 $425,000 10

C $900,000 $210,000 8

D $1,200,000 $250,000 8

E $1,700,000 $600,000 5

F $1,400,000 $325,000 6

G $800,000 $275,000 7

A) Assume that ZeeBees Cost of capital is 9%, and that they have a $6 million limit on funds available for capital budgeting purposes in the coming year. Which set of projects would maximize the total NPV for ZeeBee?

B) What is the difference between binding and non-binding capital budgeting projects. Please be specific.

C) What are the problems involved when trying to determine the optimal capital budgeting under capital rationing.