Duhe Corporation Is Considering the Following Six Long-Term Projects Only $59,100 Is Available for Investment in These Projects

question 21

Essay

Duhe Corporation is considering the following six long-term projects: $\begin{array}{cc}&\text { Net Present Value } & \text { Investment Required } \\\text { Project } 1&\$ 23,798 & \$ 14,600 \\\text { Project } 2&\$ 20,862 & \$ 17,100 \\\text { Project } 3&\$ 19,350 & \$ 15,000 \\\text { Project } 4&\$ 30,051 & \$ 18,900 \\\text { Project } 5&\$ 21,120 & \$ 17,600 \\\text { Project } 6&\$ 18,550 & \$ 10,600\end{array}$ Only $59,100 is available for investment in these projects.
Required:
a. Determine which projects should be accepted.
b. Determine the total net present value of all of the accepted projects if your plan from part (a) above is adopted.

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Definitions:

Corporate Income Tax

A tax levied on the net income (accounting profit) of corporations.

Product Prices

The amount of money required to purchase a product, influenced by cost of production, supply, demand, and market competition.

Minimum Standard

The lowest level of quality, performance, or subsistence considered acceptable by regulatory bodies or society.

Income Inequality

The unequal distribution of income among individuals or households within a population.