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Project A BCDEFG с Note: All projects have equal risk. |*|-| Project A C E Investment Required ($ Million) 500 100 50 125 300 150 250 Calculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expected rates of return.) Expected Rate of Return (%) 23.0 18.0 100 21.0 16.0 300 14.0 13.0 19.0 Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 50 21.0 18.0 14.0 Cumulative Investment ($ Million) 500 550 800 900 1,325 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 Cumulative Funds Raised ($ Million) 250

Project A BCDEFG с Note: All projects have equal risk. |*|-| Project A C E Investment Required ($ Million) 500 100 50 125 300 150 250 Calculate the cumulative investment and complete Ajax's schedule of potential projects. (Hint: Ajax prioritizes projects according to their expected rates of return.) Expected Rate of Return (%) 23.0 18.0 100 21.0 16.0 300 14.0 13.0 19.0 Investment Required Expected Rate of Return ($ Million) (%) 500 23.0 50 21.0 18.0 14.0 Cumulative Investment ($ Million) 500 550 800 900 1,325 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 Cumulative Funds Raised ($ Million) 250

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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
Transcribed Image Text: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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