The Cooper Electronics Company has developed the following schedule of potential investment projects that may be undertaken

Question:

The Cooper Electronics Company has developed the following schedule of potential investment projects that may be undertaken during the next six months:

a. If Cooper requires a minimum rate of return of 10 percent on all investments, which projects should be adopted?
b. In general, how would a capital budgeting constraint on the available amount of investment funds influence these decisions?
c. How would differing levels of project risk influence thesedecisions?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...