Question: please solve and help me to understand: LargeCo has a capital budget of $100 million to invest in projects. It has evaluated six independent projects
please solve and help me to understand:


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. Project Initial investment $10 million $90 million $25 million $40 million $25 million $15 million NPV $5 million $15 million $8 million $7 million $3 million $2 million Salvage value $3 million $5 million $2 million $1 million $5 million $8 million If the company was not capital constrained, which projects should it undertake? Project A Project B Project C Project D Project E Project F Given its capital constraint, which projects do you recommend that it undertake? Project A Project B Project C Project D Project E Project F
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