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NPV and Profitability Index A company finds the following available projects: table [ [ Project , Present Value of Benefits,Initial Investment ] , [

NPV and Profitability Index
A company finds the following available projects:
\table[[Project,Present Value of Benefits,Initial Investment],[A,25,000,20,000],[B,85,000,70,000],[C,62,000,50,000],[D,47,000,50,000]]
The net present value (NPV) of each project is given as follows:
NPV= Present value of benefits - Initial invesstment.
(a) Suppose the company has no limit to the available funds today. Which projects should the company undertake based on NPV?
(b) Suppose the company has a limit in its fund: it can spend only up to $70,000. Which projects should the company undertake?
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