Question
You have been appointed as a Project Manager for Maya Construction Company. The company is about to select a group of independent projects competing for
You have been appointed as a Project Manager for Maya Construction Company. The company is about to select a group of independent projects competing for the companys capital budget of $6.0 million. The firm recognized that its cost of capital is 14%. The company Chief Executive Officer (CEO) has given you the summarized key information (refer to Table 4.1) to be used in selecting the best group of projects.
Table 4.1 Project Information Project | Initial Investment | Internal Rate of Return (IRR) | Present Value (PV) of Inflows at 14% |
A | $7,500,000 | 16% | $7,600,000 |
B | $ 650,000 | 17% | $ 950,000 |
C | $1,800,000 | 15% | $2,100,000 |
D | $1,450,000 | 20% | $1,700,000 |
E | $ 950,000 | 25% | $1,150,000 |
F | $2,400,000 | 21% | $2,800,000 |
G | $1,200,000 | 22% | $1,500,000 |
H | $ 900,000 | 19% | $1,000,000 |
plz answer asap plz
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