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X, given the information above? (4) Question 2 [10 Marks] Adams Corporation has developed the following schedule of potential investment projects that may be undertaken
X, given the information above? (4) Question 2 [10 Marks] Adams Corporation has developed the following schedule of potential investment projects that may be undertaken during the next 6 months Project Cost (Millions of rands) R Expected Rate of Return % 3 00 20 B 1 50 22 700 7 D 14 00 10 E 50 00 12 F 12 00 9 G 1 00 44 21 Required: If Adams Corporation requires a minimum rate of return of 10 percent on all investments, which project/s should be adopted? Explain (4) 22 In general, how would a capital budgeting constraint on the available amount of investment funds influence these decisions? (4) 23 How would differing levels of project risk influence these decisions? (2) TURN OVER]
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