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Evaluate the following capital project proposals, given a capital budget of $750 million. Show formulas used....

Evaluate the following capital project proposals, given a capital budget of $750 million. Show formulas used.

Project

ICO

(millions)

NPV

(millions)

A

$100

$20

B

500

125

C

400

90

D

250

40
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Answer #1

Project B and Project D should be undertaken,

Total Cost = $750 million

Total NPV = $165 million

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