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A firm has an initial endowment of $ 1 1 5 million. The firm has identified the following available investment opportunities: Proposal Period - 0

A firm has an initial endowment of $115 million. The firm has identified the following available investment opportunities:
Proposal
Period-0 Outlay
Period-1 Return
M
$19.31 million
$21.95 million
N
$30.94 million
$40.07 million
Q
$25.00 million
$28.45 million
R
$20.86 million
$24.13 million
S
$14.91 million
$16.01 million
These are not divisible projects, which cannot be invested in a fraction (the firm must invest 100 percent of each proposal or none of it). Assume that the average market rate of return is 13.80 percent.
Which projects will the firm undertake to maximise the value of the firm?

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