Suppose a company has the following information on six independent projects:
A) Find the IRRs of the six projects.
B) Which projects should the company undertake if it has no capital constraints? Why?
C) What is the impact on the company's shareholder value in (b)?
D) Which projects should the company undertake if it has a capital constraint of $15 million? Why?
E) What is the loss to the company from the capital rationing constraint in (d)?
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