Question: As it currently stands investment 7 in the capital budgeting
As it currently stands, investment 7 in the capital budgeting model in Figure 14.40 has the lowest ratio of NPV to cash requirement, 2.5. Keeping this same ratio, can you change the cash requirement and NPV for investment 7 in such a way that it is selected in the optimal solution? Does this lead to any general insights? Explain.
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