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Use the following information to determine the optimal capital budget for Company Z. Investment Opportunity Schedule Marginal Cost of Capital (MCC) Schedule Project NINV IRR
Use the following information to determine the optimal capital budget for Company Z.
Investment Opportunity Schedule Marginal Cost of Capital (MCC) Schedule
Project NINV IRR Dollars Invested MCC
A 9 16.8% 0 20 13.8%
B 12 15.0% over 20 34 15.2%
C 24 15.5% over 34 45 15.7%
D 15 18.0% over 45 16.0%
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