37 using a discount rate of 15 using npv 51052 npv

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Unformatted text preview: ment projects for capital your company. your Suppose that the VP of Finance Suppose has given you a limited capital budget. budget How do you decide which How projects to select? projects Capital Rationing Capital You could rank the projects by IRR: Capital Rationing Capital You could rank the projects by IRR: IRR 25% 20% 15% 10% 5% 1 $ Capital Rationing Capital You could rank the projects by IRR: IRR 25% 20% 15% 10% 5% 1 2 $ Capital Rationing Capital You could rank the projects by IRR: IRR 25% 20% 15% 10% 5% 1 2 3 $ Capital Rationing Capital You could rank the projects by IRR: IRR 25% 20% 15% 10% 5% 1 2 3 4 $ Capital Rationing Capital You could rank the projects by IRR: IRR 25% 20% 15% 10% 5% 1 2 3 4 5 $ Capital Rationing Capital You could rank the projects by IRR: IRR Our budget is limited so we accept only so projects 1, 2, and 3. projects 25% 20% 15% 10% 5% 1 2 3 4 $X 5 $ Capital Rationing Capital You could rank the projects by IRR: IRR Our budget is limited so we accept only so projects 1, 2, and 3. projects 25% 20% 15% 10% 5% 1 2 3 $X $ Problems with Project Ranking Pr...
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