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ABC Corporation is experiencing hard capital rationing and will not be able to invest more than $1,000,000 this year. Develop three criteria to evaluate the
ABC Corporation is experiencing hard capital rationing and will not be able to invest more than $1,000,000 this year. Develop three criteria to evaluate the projects: NPV and Profitability index for the following four projects and indicate which projects will be accepted. (The four projects are not mutually exclusive). All four projects will last 3 years, and the firm uses a 10% discount rate. (10 points) Project Cost $ Annual Inflows $ A 300,000 220,000 B 600,000 280,000 C 700,000 320,000 D 400,000 180,000
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