4- A firm is considering the following independent projects. The total amount of capital available for investment is $385.ProjectInvestmentPresent value ofNPVPI.future cash flowsA$126$173$471.37$106$126$201.19C$127$193$661.52$134$168$341.25E$124$180$561.45Which projects should the firm accept?a. Projects A, C and D (leaving $2 unspent).O b. Projects A, B and C (leaving $26 unspent).O c. Projects A, C and E (leaving $8 unspent).O d. Projects A, B and E (leaving $29 unspent).

Net Present Value is the sumof the present value of cash inlows and outlows. A project which adds…

A firm is considering the following independent projects. The total amount of capital available for investment is $385. Project Investment Present value of NPV PI. future cash flows A $126 $173 $47 1.37 $106 $126 $20 1.19 C $127 $193 $66 1.52 D $134 $168 $34 1.25 E $124 $180 $56 1.45 Which projects should the firm accept? O a. Projects A, C and D (leaving $2 unspent). O b. Projects A, B and C (leaving $26 unspent). O c. Projects A, C and E (leaving $8 unspent). O d. Projects A, B and E (leaving $29 unspent).

A firm is considering the following independent projects. The total amount of capital available for investment is $385. Project Investment Present value of NPV PI. future cash flows A $126 $173 $47 1.37 $106 $126 $20 1.19 C $127 $193 $66 1.52 D $134 $168 $34 1.25 E $124 $180 $56 1.45 Which projects should the firm accept? O a. Projects A, C and D (leaving $2 unspent). O b. Projects A, B and C (leaving $26 unspent). O c. Projects A, C and E (leaving $8 unspent). O d. Projects A, B and E (leaving $29 unspent).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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