Question

A company has a capital budget of $300 and is evaluating the following projects capital projects....

A company has a capital budget of $300 and is evaluating the following projects capital projects. What should the company do?

  • Accept projects A and E
  • Accept projects A and B
  • Accept project B
  • Accept projects C, and E
  • Accept all the projects

Project

Initial Investment ($ millions)

PV(NCF) ($ millions)

A

200

420

B

300

660

C

200

380

D

200

330

E

100

250
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