Question

The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 14 percent. It will Invest only $73,600 this year. It has determined the IRR for each of the following projects: Project Internal Rate of Return 14.ex 8 15. 16.0 Project Size $19,900 25,900 25,900 10,900 19,900 20,900 15,900 17.0 19.0 21.0 a. Pick out the projects that the firm should accept (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.) 7 Project B 2 Project A 2 Project D Project F 2 Drniert

Answer 1

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I HAVE WRITTEN IN ANSWER SELECTED PROJECTS, REMAINING ARE REJECTED

projects (Autosaved) (Autosaved) (Autosaved) - Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins E AutoSum - Cut AC Wrap Text Calibri 11 General E Copy Fill Merge & Center Paste в IU* +.0 .00 .00 0 Conditional Format Cell Insert Delete Format Sort & Find & % Format Painter Clear Filter Select Formatting as Table Styles Clipboard Number Editing Font Alignment Styles Cells fox A146 AH AN Z AA АВ AC AD АЕ AF AG AI AJ AK AL АМ AO АР PROJECT SIZE 43 a 44 G 15900 HIGHEST IRR PROJECT CHOSEN FIRST 45 20900 46 10900 47 C 25900 48 FIRM'S BUDGET = 73600 49 SO WE WILL SELECT : PROJECT: G, F,D,C 50 51 b IF C & G ARE MUTUALLY EXCLUSIVE, PROJECT WITH HIGHER NPV SHOULD BE CHOSEN 52 SO PROJECT D SHOULD BE SELECTED 53 54 55 PROJECT SIZE 56 G 15900 57 F 20900 58 10900 59 в 25900 60 FIRM'S BUDGET = 73600 61 SO WE WILL SELECT PROJECT G, F, D , B 62 63 IRRnpvbeta RATION PBP ARR MI-np-ir STEIN i I invest, EAA NPV RELEVANT REPLACEMENTS HPR GMAM EAC MACRS BETA LEVERED REPLACEMENT BOND OPTION TO WAIT EEE erences: JF17 Rea 120% XУ WA 04:34 ENG 28-11-2019