Prepare an investment opportunities schedule

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Reference no: EM13952944

Longchamps Electric is faced with a capital budget of $150,000 for the coming year. It is considering six investment projects and has a cost of capital of 7%. The six projects are listed in the following table, along with their initial investments and their IRRs. Using the data given, prepare an investment opportunities schedule (IOS). Which projects does the IOS suggest should be funded? Does this group of projects maximize NPV? Explain.

Project	Initial investment	IRR
1	$75,000	8%
2	40,000	10
3	35,000	7
4	50,000	11
5	45,000	9
6	20,000

Reference no: EM13952944

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