Prepare an investment opportunities schedule

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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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