Limit on the size of the capital budget

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Reference no: EM131020434

a. According to the NPV method, which project should be chosen? How does this differ from the answer under the IRR?

b. If Kay had not put a limit on the size of the capital budget, under the NPV method which projects would be accepted? Do the NPV and IRR both reject the same project(s)? Why?

c. Given all the facts of the case, are you more likely to select Project A or C?

Reference no: EM131020434

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