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Which of these projects should Rostenkowski invest in

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Reference no: EM132982726

Question - Capital Budgeting Topic - Rostenkowski Ltd. has budgeted $2,500,000 for capital investment in the coming year. It is currently reviewing four projects. The CFO has gathered the following information with respect to these projects:

Project

Initial outlay

Net present value (NPV)

Q

$1,150,000

$158,000

R

$870,000

$75,000

S

$865,000

$85,000

T

$735,000

$99,000

Each of the projects can be undertaken only once, and they are not divisible. Which of these projects should Rostenkowski invest in?

a) Q, R, S, and T

b) R, S, and T

c) Q and R

d) Q and T

Reference no: EM132982726

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