What is the governments opportunity cost of capital

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Reference no: EM13244318

The state's fish and game department has a capital budget of $9million. What is the government's opportunity cost of capital if ithas the following projects to consider? What does this indicateabout which projects should be done?

Project A
first cost = 2000000
Rate of Return (%) = 9
B/C Ratio at 7% = 1.23

Project B
first cost = 1000000
Rate of Return (%) = 14
B/C Ratio at 7% = 1.42

Project C
first cost = 2000000
Rate of Return (%) = 10
B/C Ratio at 7% = 1.17

Project D
first cost = 3000000
Rate of Return (%) = 16
B/C Ratio at 7% = 1.45

Project E
first cost = 2000000
Rate of Return (%) = 13
B/C Ratio at 7% = 1.56

Project F
first cost = 3000000
Rate of Return (%) = 15
B/C Ratio at 7% = 1.35

Project G
first cost = 3000000
Rate of Return (%) = 12
B/C Ratio at 7% = 1.32

Project H
first cost = 1000000
Rate of Return (%) = 11
B/C Ratio at 7% = 1.26

Reference no: EM13244318

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