An Investor Has a Budget of $5 Million

question 3

Multiple Choice

An investor has a budget of $5 million.He can invest in the projects shown above.If the cost of capital is 6%,what investment or investments should he make?

• A)Project A
• B)Project B
• C)Project B and Project C
• D)Project C and Project D

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, or of different companies during the same period.

Certain Date

A specific, determined point in time, often mentioned in contracts and agreements.

Percentage Increase

A measure expressed as a percentage that represents the magnitude of an increase in a value or quantity compared to its original value.