DArcy (Builders) Ltd is considering three possible investment projects: A, B and C. The expected pattern of

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D’Arcy (Builders) Ltd is considering three possible investment projects: A, B and C. The expected pattern of cash flows for each project is:image text in transcribed

The business has a cost of capital of 10 per cent and the investment budget for next year is £25 million.
Required:
Which investment project(s) should the business undertake assuming each project is:

(a) divisible

(b) indivisible?

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