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Good evening . I have a question regarding part B of the problem.
If the company would accept projects B&C NPV =2940$ for an investment of 8000$.(NPV per 1 $ invested = 37c)
If the company would accept projects A&C NPV=2100$ for an investment of 5000$ (NPV per 1 $ invested = 42 c)
How sould we judge this ? Which is better B&C or A&C?
Is the point not that we can borrow up to $8500? The objective is to invest as much of the funds for the greater yield.
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