Compute total capital budget for the company

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Reference no: EM132061860

Assume that the firm has a WACC of 7%. The management has to decide on the new capital budget with the possibilities below:

Project 1 will cost $5,000 to implement and will produce a rate of return of 9% per year;

Project 2 will cost $400 and will produce a return of 5% per year;

Project 3 will cost $350 and will produce a return of 8% per year;

Project 4 will cost $700 and will produce a return of 3.5% per year.

Compute total capital budget for the company.

Reference no: EM132061860

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