Poon Moving Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.
Project
Initial Investment
IRR
PV of Inflows at 20%
A
$3,000,000
21%
$3,050,000
B
$9,000,000
25%
$9,320,000
C
$1,000,000
24%
$1, ...
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21 Dec 2015