A medium size manufacturing company has a budget of $200,000 to invest on five different capital projects. Each has a six year life. Additional financial data for the five project opportunities are given below. Initial Cost $50K EUAB A D.A. E OCAB OC.B. D OACE 12,160 B $80K Determine which projects should be funded. 18,368 C $30K 7,932 D $40K 8,652 E $60K 13,374 K

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 19PROB
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A medium size manufacturing company has a budget of $200,000 to invest on five
different capital projects. Each has a six year life. Additional financial data for the five
project opportunities are given below.
Initial Cost $50K
EUAB
OD.A. E
OCAB
A
OC. B. D
OA.C.E
12,160
Determine which projects should be funded.
B
$80K
18,368
C
$30K
7,932
D
$40K
8,652
E
$60K
13,374
Transcribed Image Text:A medium size manufacturing company has a budget of $200,000 to invest on five different capital projects. Each has a six year life. Additional financial data for the five project opportunities are given below. Initial Cost $50K EUAB OD.A. E OCAB A OC. B. D OA.C.E 12,160 Determine which projects should be funded. B $80K 18,368 C $30K 7,932 D $40K 8,652 E $60K 13,374
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