Which one would recommend if the company can only invest

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Pedro's plumbing has evaluated three projects:

Project A: Buy a new fleet of delivery vehicles investment $750,000; net present value, $200,000; payback 5 years

Project B: Re-equip the warehouse for greater efficiency investment, $1,000,000; net present value, $250,000 payback 4 years

Project C: Launch a new line of products investment, $1,500,000; net present value, $300,000; payback 6 years

All three projects are acceptable as they have positive net present values, but the company is short of cash and cannot invest in all of them.

Required -

Problem 1: If the company can only invest in one of the projects, which one would you recommend?

Reference no: EM132933929

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