The Emu Manufacturing Company is considering five independent investment opportunities. The required investment outlays and expected
(i) Based on the IRR method, which investment(s) should be accepted?
(ii) If the company were to undertake all acceptable investments, what amount should be paid out in dividends according to the residual dividend policy?
(iii) What would be the amount of external finance required if the company were to undertake all acceptable investments?
![Investment
Investment Cost
IRR (%)
A
$275,000
17.5
$325,000
$550,000
$350,000
B
15.7
C
14.3
D
13.2
E
$400,000
11.8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F407dd193-36ee-4c58-bfd4-66528c9bab1b%2Ff50f0410-9165-48cb-a033-5b149a3b2099%2Fhu8o74_processed.png&w=3840&q=75)
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