Texas Transport has five possible investment projects for the coming year.Each project is indivisible.They are:

The firm's weighted marginal cost of capital schedule is 12 percent for up to $6 million of investment; 16 percent for between $6 million and $18 million of investment; and above $18 million the weighted cost of capital is 18 percent.The optimal capital budget is
A) $12 million.
B) $18 million.
C) $23 million.
D) $28 million.

Question

Texas Transport has five possible investment projects for the coming year.Each project is indivisible.They are:

The firm's weighted marginal cost of capital schedule is 12 percent for up to $6 million of investment; 16 percent for between $6 million and $18 million of investment; and above $18 million the weighted cost of capital is 18 percent.The optimal capital budget is
A) $12 million. 
B) $18 million. 
C) $23 million. 
D) $28 million.

Quizplus · Accepted Answer

The Answer of Texas Transport has five possible investment projects for the coming year.Each project is indivisible.They are:

The firm's weighted marginal cost of capital schedule is 12 percent for up to $6 million of investment; 16 percent for between $6 million and $18 million of investment; and above $18 million the weighted cost of capital is 18 percent.The optimal capital budget is
A) $12 million. 
B) $18 million. 
C) $23 million. 
D) $28 million.

Texas Transport Has Five Possible Investment Projects for the Coming