LargeCo has a capital budget of $100 million to invest in projects. It has evaluated six independent projects and the results of the analysis are summarized in the following table.

a. If the company was not capital constrained, which projects should it undertake?

b. Given its capital constraint, which projects do you recommend that it undertake?

c. How can the firm increase its capital budget?

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Project Initial investment NPV Salvage value A $10 million $5 million $3 million $15 million $8 million $7 million $3 million $5 million $2 million $1 million $5 million В $90 million $25 million D $40 million E $25 million F $15 million $2 million $8 million