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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 | 5 | 0 |
2 | 15 | 0 |
3 | 30 | 0 |
4 | 30 | 90 |
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