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********** Please provide workings for better understanding************** ABC Company is considering a number of projects which are mutually exclusive. It has $500,000 available for investment.
********** Please provide workings for better understanding**************
ABC Company is considering a number of projects which are mutually exclusive. It has $500,000 available for investment. The details of these projects are shown below: (c) Since the company has $500,000 to invest, assume that the company will be able to invest the additional funds beyond what is required for investment at the cost of capital. For example, the additional funds available after investing in project A is $200,000, which will generate a return equal to its cost of capital i.e. 12%. Calculate the revised NPV, IRR and PI for each of the project after considering the investment of additional funds and explain which project is suitableStep by Step Solution
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