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NPV and Capital Constraint Which project if the firm will pick if it face no budget constraint? Which projects the firm will pick if the
NPV and Capital Constraint
Which project if the firm will pick if it face no budget constraint? Which projects the firm will pick if the firm only have $900,000?
TABLE 10-7 Capital Rationing: Choosing among Five Indivisible Projects Profitability Net Present Initial outlay Value Project Index $200,000 2.4 $280,000 200,000 2.3 260,000 1.7 800,000 560,000 1.3 300,000 90,000 1.2 300,000 60,000Step by Step Solution
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