ll. Subject :- Accounting The Ajax Corporation has the following set of projects available to it:ProjectAGFBUDEFNote: All projects have equal risk.сProjectAсBGCalculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expectedrates of return.)EInvestment Required Expected Rate of Return($ Million)(%)50023.010050125300150250Investment Required Expected Rate of Return($ Million)(%)50023.050$550$900100O $1,30018.021.016.014.013.019.0300O $1,00021.021.0► ► ►18.014.0Ajax can raise funds with the following marginal costs. Calculate the cumulative funds raised to complete the following table.Block of Funds Cost of Capital($ Million)(%)First 25014.0Next 25015.5Next 10016.0Next 25016.5Next 20018.0Next 200What is the optimal capital budget (in millions) for Ajax?Cumulative Investment($ Million)5005508001||Cumulative Funds Raised($ Million)2505006009001,325

The cost of capital refers to the required rate of return that a company or investor expects to earn…

The Ajax Corporation has the following set of projects available to it: Project A B с D E F G Note: All projects have equal risk. Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 100 18.0 50 125 300 150 250 Project A с |-|-| Calculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expected rates of return.) Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 21.0 $550 $900 50 $1,300 21.0 100 O $1,000 16.0 14.0 13.0 300 19.0 18.0 What is the optimal capital budget (in millions) for Ajax? 14.0 Ajax can raise funds with the following marginal costs. Calculate the cumulative funds raised to complete the following table. Block of Funds Cost of Capital ($ Million) (%) First 250 14.0 Next 250 15.5 Next 100 16.0 Next 250 16.5 Next 200 18.0 Next 200 21.0 Cumulative Investment ($ Million) 500 550 800 900 1,325 Cumulative Funds Raised ($ Million) 250 500 600

The Ajax Corporation has the following set of projects available to it: Project A B с D E F G Note: All projects have equal risk. Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 100 18.0 50 125 300 150 250 Project A с |-|-| Calculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expected rates of return.) Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 21.0 $550 $900 50 $1,300 21.0 100 O $1,000 16.0 14.0 13.0 300 19.0 18.0 What is the optimal capital budget (in millions) for Ajax? 14.0 Ajax can raise funds with the following marginal costs. Calculate the cumulative funds raised to complete the following table. Block of Funds Cost of Capital ($ Million) (%) First 250 14.0 Next 250 15.5 Next 100 16.0 Next 250 16.5 Next 200 18.0 Next 200 21.0 Cumulative Investment ($ Million) 500 550 800 900 1,325 Cumulative Funds Raised ($ Million) 250 500 600

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

ll.

Subject :- Accounting

The Ajax Corporation has the following set of projects available to it:
Project
A
G
F
BUDEF
Note: All projects have equal risk.
с
Project
A
с
B
G
Calculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expected
rates of return.)
E
Investment Required Expected Rate of Return
($ Million)
(%)
500
23.0
100
50
125
300
150
250
Investment Required Expected Rate of Return
($ Million)
(%)
500
23.0
50
$550
$900
100
O $1,300
18.0
21.0
16.0
14.0
13.0
19.0
300
O $1,000
21.0
21.0
► ► ►
18.0
14.0
Ajax can raise funds with the following marginal costs. Calculate the cumulative funds raised to complete the following table.
Block of Funds Cost of Capital
($ Million)
(%)
First 250
14.0
Next 250
15.5
Next 100
16.0
Next 250
16.5
Next 200
18.0
Next 200
What is the optimal capital budget (in millions) for Ajax?
Cumulative Investment
($ Million)
500
550
800
1||
Cumulative Funds Raised
($ Million)
250
500
600
900
1,325

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