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Question
I301 Motors has several investment projects under consideration, all with positive net present values. However, due to a shortage of trained personnel, a limit of $1,250,000 has been placed on the capital budget for this year. Which of the projects listed below should be included in this year's capital budget? Explain your answer.| Project | Initial Outlay | NPV |
| A | $250,000 | $325,000 |
| B | 250,000 | 350,000 |
| C | 100,000 | 700,000 |
| D | 375,000 | 112,500 |
| E | 375,000 | 75,000 |
Answer
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