A company has £6 million available and three possible projects, none of which are divisible: Project Investment at t0 NPV S £1.75m £0.56m T £2.50m £0.90m U £3.75m £1.30m   Which projects should be undertaken in order to maximise shareholder wealth? A  S and T B  S and U C  T and U D S, T and U

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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5.   A company has £6 million available and three possible projects, none of which are divisible:

Project

Investment at t0

NPV

S

£1.75m

£0.56m

T

£2.50m

£0.90m

U

£3.75m

£1.30m

 

Which projects should be undertaken in order to maximise shareholder wealth?

A  S and T

B  S and U

C  T and U

D S, T and U

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