Step by step solution in this problem

27. Griffin-Kornberg is reviewing the following projects for next year's capital program. Initial Length Annual Project Investment in years Cash Flow $3.0 million 6 $ 719,374 B $3.5 million 5 $ 970,934 $4.0 million 7 $ 904,443 D $5.0 million 4 $1,716,024 E $6.0 million 6 $1,500,919 F $7.0 million 5 $1,941,868 G $8.0 million 7 $1,725,240 Projects A and B are mutually exclusive and so are Projects D and E. Griffin-Kornberg has a 9% cost of capital and a maximum of $14 million to spend on capital projects next year. Use capital rationing to determine which projects should be included in Griffin- Kornberg's capital program