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A company is evaluating two independent projects for capital investment purposes. If the company has only $85 million to invest, and its required return is

A company is evaluating two independent projects for capital investment purposes. If the company has only $85 million to invest, and its required return is 10 percent by how much the companys value will increase?

All values are in millions.

Project 1

Project 2

0

-50

-50

1

30

0

2

25

0

3

20

0

4

20

150

26.62 million

60.77 million

52.45 million

45.33 million

79.07 million

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