1. Assume that Firthing Manufacturing has no budget restrictions for capital expenditures and wants to maximize its value to Conglomerates. Identify the capital investment projects that Firthing should include in the capital budget it submits to Conglomerates Inc. Explain the basis for your selection.
2. Ignore your response to requirement 1. Assume that Conglomerates Inc. has specified that Firthing Manufacturing will have a restricted budget for capital expenditures, and that Firthing should select the projects that maximize the company’s value. Identify the capital investment projects Firthing should include in its capital expenditures budget, and explain the basis for your selections, if the budget is (a) $540,000 and (b) $600,000.