You are a manager that has an investment budget of $80 million for year 2008. You may invest in the following projects. All numbers are in millions of dollars. (1) Why might these projects have different discount rates? (2) Which project(s) should the manager choose? (3) Which projects will be chosen if there is no capital rationing?

Discount Project Investment Project Life, Years Rate, % 30 Annual Cash Flow 10 10 20 B 12 8 50 30 E 12 30 10 Discount Project Investment Project Life, Years Rate, % 30 Annual Cash Flow 10 10 20 B 12 8 50 30 E 12 30 10