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In: Finance

A company is evaluating two independent projects for capital investment purposes. If the company has only...

A company is evaluating two independent projects for capital investment purposes. If the company has only $85 million to invest, and its required return is 10 percent by how much the company’s value will increase?

All values are in millions.

Project 1

Project 2

0

-50

-50

1

30

0

2

25

0

3

20

0

4

20

150

A) 52.45 million

B) 26.62 million

C) 79.07 million

D) 60.77 million

E) 45.33 million

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