A company is considering five investment projects as follows: The company has $40 000 available for investment.

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A company is considering five investment projects as follows:

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The company has $40 000 available for investment. Projects C and D are mutually exclusive. All projects can be undertaken only once and are divisible.

Required:Calculate the maximum net present value (NPV) that can be earned from the projects given that there is only $40 000 available for investment.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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