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A Firm Has the Following Investment Opportunities If the Cost of Capital Is 10% and the Capital

Question 73

Multiple Choice

A firm has the following investment opportunities:  Investment  NFV  IRR  Project A $150,000$30,00014% Project B $125,000$20,00011% Project C $100,000$25,00013%\begin{array}{llll}&\text { Investment }&\text { NFV }& \text { IRR } \\\text { Project A } & \$ 150,000 & \$ 30,000 & 14 \% \\\text { Project B } & \$ 125,000 & \$ 20,000 & 11 \% \\\text { Project C } & \$ 100,000 & \$ 25,000 & 13 \%\end{array} If the cost of capital is 10% and the capital budget is limited to $280,000, which project(s) should the firm undertake?


A) Project A and project B
B) Project A and project C
C) Project B and project C
D) Project A

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