Finished evaluating several projects

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Reference no: EM131354348

Meds R Us has just finished evaluating several projects. Their cost of capital is 10%. NPV’s are calculated by the firm’s current cost of capital.

Project Cost NPV IRR

A $12,000 $ -3,000 9%

B $42,000 $12,000 17%

C $45,000 $ 6,000 12%

D $51,000 $12,000 16%

E $63,000 $15,000 11%

B. If Meds R Us has a Capital Budget limit of $120,000, and assuming the projects are of the same risk, which projects should they accept? Why?

Reference no: EM131354348

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