Case Study 3 Constructed Response Answer Hocus Pocus Company wants to increase sales by adding a new product line. The company is considering three different projects. However, its capital budget is limited to $1,500,000. In addition, the company requires a rate of return of 10%. The information concerning the three product lines is given below. *Assume all amounts stated on the budgeted income statement are cash items. Required a) Determine the net present value for each project assuming all cash flows cease after five years. c) If Hocus Pocus had a capital budget limit of $2,300,000, how should they invest it