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Firm Y has a budget limit of $10 million. It has the following three opportunities. Project A: investment =$10 million, NPV =$18 million; Project B

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Firm Y has a budget limit of $10 million. It has the following three opportunities. Project A: investment =$10 million, NPV =$18 million; Project B : investment =$5 million, NPV =$12 million; Project C: investment: $4 million, NPV =$8 million. Which project should Firm Y invest in based on Weighted Average Profitability Index (WAPI) and what is the highest PAPI? Project A, WAPI = 2 Combination of B and C,WAPI=2.2 Project B, WAPI =2.4 Combination of B and C, WAPI =2

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