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1. (Capital budgeting) A firm is considering funding several proposed projects that have the financial properties shown in Table 5.6. The available budget is $600,000.

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1. (Capital budgeting) A firm is considering funding several proposed projects that have the financial properties shown in Table 5.6. The available budget is $600,000. What set of projects would be recommended by the approximate method based on benefit-cost ratios? What is the optimal set of projects? TABLE 5.6 FINANCIAL PROPERTIES OF PROPOSED PROJECTS Project 1 2. 3 4 5 Outlay ($1,000) 100 300 200 150 150 Present worth ($1,000) 200 500 300 200 250 min

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