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A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of Php 1,000,000; the firm's cost of capital is 15%. Project Initial Investment(Php) IRR NPV (Php) 200,000 400,000 250,000 200,000 150,000 400,000 100,000 20,000 60,000 (5,000) 50,000 150,000 1 19% 2 17 3 16 4 12 20 14.5

A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of Php 1,000,000; the firm's cost of capital is 15%. Project Initial Investment(Php) IRR NPV (Php) 200,000 400,000 250,000 200,000 150,000 400,000 100,000 20,000 60,000 (5,000) 50,000 150,000 1 19% 2 17 3 16 4 12 20 14.5

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using Net Present Value Approach of ranking projects, which projects should the firm accept?

Problem B: A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of Php 1,000,000; the firm's cost of capital is 15%. Project Initial Investment(Php) IRR NPV (Php) 200,000 400,000 250,000 200,000 150,000 400,000 100,000 20,000 60,000 (5,000) 50,000 150,000 1 19% 2 17 3 16 4 12 20 6. 14.5
Transcribed Image Text:Problem B: A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capital budget of Php 1,000,000; the firm's cost of capital is 15%. Project Initial Investment(Php) IRR NPV (Php) 200,000 400,000 250,000 200,000 150,000 400,000 100,000 20,000 60,000 (5,000) 50,000 150,000 1 19% 2 17 3 16 4 12 20 6. 14.5
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