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) _______ __________________ ___ ______ 1 200,000 19% 100,000 2 400,000 17% 20,000 3 250,000 16% 60,000 4 200,000 12% (5,000) 5 150,000 20% 50,000 6 400,000 14.5% 150,000 *Using Internal Rate of Return 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
_______ __________________ ___ ______ 1 200,000 19% 100,000
2 400,000 17% 20,000
3 250,000 16% 60,000
4 200,000 12% (5,000)
5 150,000 20% 50,000
6 400,000 14.5% 150,000
*Using
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