What will be the amount of garth optimal capital budget

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Garth Industries is evaluating the following portfolio of projects for possible inclusion in its current capital budget, ranked by NPV. The company's capital structure calls for 60% debt and 40% equity. Garth expects to have net income of $12,250,000.

Project A: NPV = $5,240,000, capital investment = $10,000,000
Project B: NPV = $2,111,750, capital investment = $10,000,000
Project C: NPV = $908,750, capital investment = $5,000,000
Project D: NPV =$467,000, capital investment = $2,000,000
Project E: NPV = $51,000, capital investment = $500,000
Project F: NPV = ($21,000), capital investment = $800,000
Project G: NPV = ($200,000), capital investment = $1,500,000


a) What will be the amount of Garth's optimal capital budget?

 

Reference no: EM13305073

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