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Marginal analysis and capital budgeting decisions. A company faces the following schedule of potential investment...

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Accounting

Marginal analysis and capital budgeting decisions. A company faces the following schedule of potential investment projects (all assumed to be equal risk).
Use marginal analysis to decide which projects should NOT be undertaken?
\table[[Project,\table[[Investment],[Required ($],[million)]],\table[[Expected Rate of],[Return (%)]],\table[[Cumulative],[Investment]]],[A,25,27,25],[B,15,24,40],[C,40,21,80],[D,35,18,115],[E,12,15,127],[F,20,14,147],[G,18,13,165],[H,13,11,178],[I,7,8,185]]
The following is the cost of acquiring the funds needed to finance these investment projects.
\table[[Block of funds ($ million),Cost of Capital (%),Cumulative Funds Raised],[First 50,10,50],[Next 25,10.5,75],[Next 40,11,115],[Next 50,12.2,165],[Next 20,14.5,185]]
F and G
H and I
F,G,H, and I
G,H,I
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