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A company is considering to invest in three capital expenditures project. The expected Net Present Value (NPV) of the projects are given below: Project A

A company is considering to invest in three capital expenditures project. The expected Net Present Value (NPV) of the projects are given below: Project A Project B Project C Initial Outlay (100,000) (200,000) (300,000) NPV 35,000 80,000 125,000 The amount of capital investment available is 550,000. Each project can be undertaken only once. Required Identify the optimal investment strategy and calculate the resultant Net Present Value (NPV), assuming that each of the project is divisible

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