Which projects should be adopted

Reference no: EM13299777

The Cooper Electronics Company has developed the following schedule of potential investment projects that may be undertaken during the next six months:

Project Cost (in Millions of Dollars) Expected Rate of Return
A $ 3.0 20%

B 1.5 22

C 7.0 7

D 14.0 10

E 50.0 12

F 12.0 9

G 1.0 44

a. If Cooper requires a minimum rate of return of 10 percent on all investments, which projects should be adopted?
b. In general, how would a capital budgeting constraint on the available amount of investment funds influence these decisions?
c. How would differing levels of project risk influence these decisions?

Reference no: EM13299777

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