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Spotty Co's capital investment is restricted to 320,000 this period. The company has appraised three capital investment projects with the following results: Project Y Z
Spotty Co's capital investment is restricted to 320,000 this period. The company has appraised three capital investment projects with the following results: Project Y Z Capital Outlay (130,000) (150,000) (180,000) PV of net cash inflows 265.000 315,000 360,000 NPV of project 135,000 165,000 180,000 Required: Calculate the maximum NPV that can be achieved assuming all three projects are divisible. a) b) c) d) 326,000 334,000 340,000 345,000
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