Capital budgeting evaluation technique

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Be sure to name each capital budgeting evaluation technique you use before each set of calculations.

You are the CFO of a Fortune 100 company. Your firm recently purchased a rival firm for $1.75 billion in a stock and cash offer. You have a portfolio of three mutually exclusive projects. Three is also your lucky number. You always include the number three when you play the lottery. For the fiscal year ending May 31, 2022, your company has allotted $100 million to invest in capital projects. They also allotted $100 million for state political lobbying efforts. You think the $100 million for lobbying should have been cut by 75% and the difference added to the capital projects budget. After calculating the net present value of each project in your portfolio, you have the following values:

Project A: $50 million

Project B: $40 million

Project C: $10 million.

Last year Project D had a net present value of $90 million.

How many projects are your company able to invest in? Which project or projects would you recommend? What about Project D?

Reference no: EM133061321

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