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If management imposes a limit of $500,000 on capital investments, which of the following project combinations should it accept. A - Initial Cash Outlay ($)

If management imposes a limit of $500,000 on capital investments, which of the following

project combinations should it accept.

A - Initial Cash Outlay ($) = 100,000 Net Present Value ($) = 12,000, Internal Rate of Return (%) = 12

B- Initial Cash Outlay ($) = 150,000 Net Present Value ($) = 14,000 Internal Rate of Return (%) = 13.5

C- Initial Cash Outlay ($) = 200,000 Net Present Value ($) = 25,000 Internal Rate of Return (%) = 11.1

D- Initial Cash Outlay ($) = 200,000 Net Present Value ($) = 26,000 Internal Rate of Return (%) = 12.2

E - Initial Cash Outlay ($) = 300,000 Net Present Value ($) = 35,000 Internal Rate of Return (%) = 12.7

F - Initial Cash Outlay ($) = 300,000 Net Present Value ($) = 38,000 Internal Rate of Return (%) = 12.5

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