Constraints on borrowing. Country Farmlands, Inc. is considering the following potential projects for this coming year, but has only $200,000 for these projects: Project A: Cost $60,000, NPV $4,000, and IRR 11% Project B: Cost $78,000, NPV $6,000, and IRR 12% Project C: Cost $38,000, NPV $3,000, and IRR 10% Project D: Cost $41,000, NPV $4,000, and IRR 9% Project E: Cost $56,000, NPV $6,000, and IRR 13% Project F: Cost $29,000, NPV $2,000, and IRR 7% What projects should Farmlands pick? What projects should Farmlands pick? (Select the best responses.) O A. B, C, D, and E. O B. C, D, E, and F. OC. A, C, D, and E. O D. A, B, D, and E. O E. B, C, D, and F.
Constraints on borrowing. Country Farmlands, Inc. is considering the following potential projects for this coming year, but has only $200,000 for these projects: Project A: Cost $60,000, NPV $4,000, and IRR 11% Project B: Cost $78,000, NPV $6,000, and IRR 12% Project C: Cost $38,000, NPV $3,000, and IRR 10% Project D: Cost $41,000, NPV $4,000, and IRR 9% Project E: Cost $56,000, NPV $6,000, and IRR 13% Project F: Cost $29,000, NPV $2,000, and IRR 7% What projects should Farmlands pick? What projects should Farmlands pick? (Select the best responses.) O A. B, C, D, and E. O B. C, D, E, and F. OC. A, C, D, and E. O D. A, B, D, and E. O E. B, C, D, and F.
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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Chapter 11, Question 10
Transcribed Image Text:Constraints on borrowing. Country Farmlands, Inc. is considering the following potential projects for this coming year, but has only $200,000 for these projects:
Project A: Cost $60,000, NPV $4,000, and IRR 11%
Project B: Cost $78,000, NPV $6,000, and IRR 12%
Project C: Cost $38,000, NPV $3,000, and IRR 10%
Project D: Cost $41,000, NPV $4,000, and IRR 9%
Project E: Cost $56,000, NPV $6,000, and IRR 13%
Project F: Cost $29,000, NPV $2,000, and IRR 7%
What projects should Farmlands pick?
What projects should Farmlands pick? (Select the best responses.)
O A. B, C, D, and E.
O B. C, D, E, and F.
OC. A, C, D, and E.
O D. A, B, D, and E.
O E. B, C, D, and F.
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