Project A has a cost of $

Project A has a cost of $

Project A has a cost of $100,000 and IRR of 19%, Project B has a cost of 75,000 and IRR 17%, Project C has a cost of 90,000 and IRR of 16% and Project D has a cost of 80,000 and IRR of 14%. Cost of Capital is 15%. If the company adjusts by 3 percentage points for both low and high risk projects and the projects are classified as A & B are high risk, C average risk, and D is low risk. What is the optimal capital budget? A $175,000 B $245,000 C $265,000 D $270,000

%d bloggers like this: