It would be better when doing business .
My notation would be myx = M(XC+%) and the mean is Summat.
This can be a deterrent for engaging in practices that are ethically wrong during underwriting process.
Knowing that they could be fined large amount of money if found to be engaging in acts that ethically incorrect will serves to discourage investment banking firms from such acts.<span />
Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)