A firm is facing capital rationing with a budget constraint of $$5,000,000.$ Evaluate the following projects and select the combination that maximizes NPV: Project X: NPV $$1,500,000,$ Investment $$3,000,000$; Project Y: NPV $$1,000,000,$ Investment $$1,500,000$; Project Z: NPV $$800,000,$ Investment $$1,200,000.$

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To maximize NPV within the budget constraint of 5000000 we need to calculate the NPV of each project ... View the full answer