26 Wirth International Hotels Ltd is reviewing several investment proposals for the next year. To undertake all

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26 Wirth International Hotels Ltd is reviewing several investment proposals for the next year. To undertake all eight projects would cost $1 550 000, but due to funding restrictions the firm only has $600 000 available for new investments. Given the data below, and a cost of capital of 13%, which projects should be accepted? Explain your decision.

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Fundamentals Of Finance

ISBN: 9780994132529

4th Edition

Authors: Andrea Bennett, Jenny Parry, Carolyn Wirth

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