Compute the optimal capital budget what projects should be


The firm referred to in problem #1 has 3 projects available: One with a cost of $4000 and an IRR of 18%; one with a cost of $3000 and an IRR of 20%; and one with a cost of $6000 and an IRR of 6%. Do the following:

Compute the optimal capital budget. In other words, how much capital must the firm raise in order to invest in all projects whose IRR exceeds the WACC?

What projects should be accepted?

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Financial Management: Compute the optimal capital budget what projects should be
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