A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of P1,000,000; the firm's cost of capital is 15 percent. Project Initial investment P200,000 400,000 250,000 200,000 150,000 400 000 IRR 19% 17 16 12 20 NPV P100,000 20,000 60,000 -5,000 50,000 150 000 2 3 4 15
A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of P1,000,000; the firm's cost of capital is 15 percent. Project Initial investment P200,000 400,000 250,000 200,000 150,000 400 000 IRR 19% 17 16 12 20 NPV P100,000 20,000 60,000 -5,000 50,000 150 000 2 3 4 15
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the
A. 1, 6, 5 and 3
B. 1, 2, 3, and 5
C. 2, 3, 4, and 6
D. 1, 3, 4, and 6
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