3. The four independent projects shown below are under consideration by Revamonte Packing. Given: Project Initial Investment, For Bundle, $ W X Y Z 15,000 25,000 10,000 25,000 PW at 18%, $ 8,540 12,325 3,000 10 Determine which projects the company should fund if it is in: a) unlimited condition b) budget-constrained condition with a capital budget of $25,000. Life (Years) 6 8 6 4

3. The four independent projects shown below are under consideration by Revamonte Packing. Given: Project Initial Investment, For Bundle, $ W X Y Z 15,000 25,000 10,000 25,000 PW at 18%, $ 8,540 12,325 3,000 10 Determine which projects the company should fund if it is in: a) unlimited condition b) budget-constrained condition with a capital budget of $25,000. Life (Years) 6 8 6 4

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.4IP

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