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39. Use the following Information to Rower next two questions Sam, the owner of a clothing company, is thinking of a way to expand his

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39. Use the following Information to Rower next two questions Sam, the owner of a clothing company, is thinking of a way to expand his business. He had many ide, and now he is considering four peojects. He can spend a maximum out of 5550 million for the new project(s). These projects are mutually exclusive and will be repeated. Fach project has an estimated cost of capital of 10%. Details of each project we described in the below table: Project 1 Project II Project III Project IV Initial Outlay 400 million 300 million 150 million 250 million NPY 91.57 million 48.42 million 48.95 million 53.26 million IRR 15.10% 15.34% 27.76% 18.03% ure 10 Years 6 Years 3 Years 5 Years What is Project I's Profitability Index? O A 1.16 OB. 1.23 O C. 1.33 OD. 1.51 40. Given a $550 million capital constraint (the maximum amount the firm can spend) and the other assumptions (mutually exclusivity and repeated, which he chosen leda from problem shove) oc A. Project O B. Projects and I OC. Project III OD. Project II and IV

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