=7.4. A real-estate development firm, Peterson and Johnson, is considering five possible development projects. Using units of

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=7.4. A real-estate development firm, Peterson and Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated longrun profit (net present value) that each project would generate, as well as the amount of investment required to undertake the project.

VThe owners of the firm, Dave Peterson and Ron Johnson, have raised $20 million of investment capital for these projects. Dave and Ron now want to select the combination of projects that will maximize their total estimated long-run profit (net present value) without investing more than $20 million.

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