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Author Question: Durst Enterprises, which is debt-free and finances only with equity from retained earnings, is ... (Read 82 times)

blkth103

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on: Aug 7, 2023
Durst Enterprises, which is debt-free and finances only with equity from retained earnings, is considering four large capital budgeting projects. Its CFO hired you to assist in deciding how many projects should be accepted. You have the following information:

– rRF= 5%; RPM= 6%; and b = 1.1.

– The company adds 4%, 2%, 0%, or –2% to the corporate WACC when it evaluates projects that differ in risk.

– Project A is in the –2% category, B is in the 0% group, C is in the +2% group, and D is in the +4% group.

– Each project has a cost of $30,000.

– The projects’ expected returns are as follows: A = 9.9%, B = 11.7%, C = 13.8%, and D = 15.9%. If these are the only projects under consideration, how large should Durst’s capital budget be?


◦

$30,000


◦

$60,000


◦

$90,000


◦

$120,000

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by blkth103 on Aug 7, 2023

dianagarcia

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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blkth103

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

ttt030911

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Reply 3 on: Yesterday
Gracias!

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