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Three projects are independent, and the company has only $500,000 to invest. Project A requires an investment of $500,000 and has a net present value
Three projects are independent, and the company has only $500,000 to invest. Project A requires an investment of $500,000 and has a net present value of $125,000 using the company's cost of capital. Project B requires an investment of $250,000 and has a net present value of $80,000 using the company's cost of capital. Project C requires an investment of $250,000 and has a net present value of $65,000 using the company's cost of capital. Which projects(s) should be accepted? Because the projects are independent, only one project can be accepted. Accept Project A because it has the highest net present value. O Because the projects are independent, more than one project can be accepted. Accept both Project B and Project C because their combined net present value is larger than Project A's net present value. O Because the projects are independent, more than one project can be accepted. Accept Projects A, B, and because they all have positive net present values. O Because the projects are independent, more than one project can be accepted. Accept Project A because it has the highest net present value.
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