A firm has four possible projects in which it can invest. Their rates of return are 15

Question:

A firm has four possible projects in which it can invest. Their rates of return are 15 percent, 12 percent, 10 percent, and 7 percent. What will determine how many of these projects it finances? Does it matter whether the firm has to borrow to finance the projects, or whether the firm has to finance the projects from its own funds?

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