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Question: The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 13 percent. It will only invest $60,000 this year. It has determined the internal rate of return for each of the following projects.

a. Pick out the projects that the firm should accept.

b. If Projects D and E are mutually exclusive, how would that affect your overall answer? That is, which projects would you accept in spending $60,000?

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Category:- Basic Finance
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