A company has £550,000 available to invest and has the following investment projects available: Project Initial investme

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answerhappygod
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A company has £550,000 available to invest and has the following investment projects available: Project Initial investme

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A company has £550,000 available to invest and has the following
investment projects available: Project Initial investment required
(£’000) NPV of the project (£’000) NPV/ investment A 200 300 1.50 B
450 810 1.80 C 600 840 1.40 The projects are all divisible. What is
the NPV resulting from the optimum investment plan?
a. £770,000 b. £810,000 c. £960,000 d. £1,110,000
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