Question
Use the following information to answer next three questions: IO PI IRR LIFE Project 1 $300,000 1.12 14.38% 15 years Project 2 $150,000 1.08 13.32%
Use the following information to answer next three questions:
IO PI IRR LIFE
Project 1 $300,000 1.12 14.38% 15 years
Project 2 $150,000 1.08 13.32% 6 years
Project 3 $100,000 1.20 16.46% 3 years
Assume that the cost of capital is 12%.
If the firm has a maximum capital expenditures budget of $450,000, and if the projects are mutually exclusive, and repeatable, which project(s) should be accepted?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
6th Edition
1599180219, 978-0139043437
