Whipple Industries, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration:
The firm's marginal cost of capital schedule is as follows:

Determine Whipple's optimal capital budget (in dollars) for the coming year.

Question

Whipple Industries, Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration: 
The firm's marginal cost of capital schedule is as follows:

Determine Whipple's optimal capital budget (in dollars) for the coming year.

Quizplus · Accepted Answer

Solution:
 11ea10f6_a157_b399_b6b3_1b296171fb9a_TB2040_00 Optimal Capital budget: $11 million (Projects A,B,C.D,E)