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You have a budget of $35 million (M) and have the following investment opportunities: Project A Project B Project C Project D O Project A
You have a budget of $35 million (M) and have the following investment opportunities: Project A Project B Project C Project D O Project A O Project B O Project B and Project A Project B and Project C Initial Investment Project C and Project D 35M 21M 14M 21M NPV 11.37M 6.95M What investment or investments should you make if your goal is to maximize firm value? 9.18M 6.06M
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