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Consider a firm with a budget constraint of $1m and five indivisible projects available to it as in the below table. Project Initial Outlay Net
Consider a firm with a budget constraint of $1m and five indivisible projects available to it as in the below table.
Project | Initial Outlay | Net Present Value |
Project A | 350,000 | 280,000 |
Project B | 200,000 | 260,000 |
Project C | 600,000 | 500,000 |
Project D | 200,000 | 120,000 |
Project E | 280,000 | 270,000 |
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Which project should be accepted? Justify your answer.
Note: No hand writing !
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