As it currently stands, investment 7 in the capital budgeting model in Figure 6.1 has the lowest
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As it currently stands, investment 7 in the capital budgeting model in Figure 6.1 has the lowest ratio of NPV to cash requirement, 2.5. Keeping this same ratio, can you change the cash requirement and NPV for investment 7 so that it is selected in the optimal solution?
Does this lead to any general insights? Explain.
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Related Book For
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright
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