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Warehouse Ltd . is a highly geared company that wishes to expand its operations. Six possible capital investments have been identified, but the company only
Warehouse Ltd is a highly geared company that wishes to expand its operations. Six possible capital investments have been identified, but the company only has access to a total of $ The projects may not be postponed until a future period. After the projects end, it is unlikely that similar investment opportunities will occur.
Expected net cash flows including residual values are:
Project
Investment
$
NPV
$
A
B
C
D
E
F
Plan the best possible course of action to maximize NPV rank the projects accordingly.
Question Answer
a
EDFCBA
b
FDEBCA
c
DFEABC
d
ABCDEF
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