A company is evaluating two independent projects for capitalinvestment purposes. If the company has only $85 million to invest,and its required return is 10 percent by how much the company’svalue will increase?
All values are in millions.
| Project 1 | Project 2 |
0 | -50 | -50 |
1 | 30 | 0 |
2 | 25 | 0 |
3 | 20 | 0 |
4 | 20 | 150 |
A) 52.45 million
B) 26.62 million
C) 79.07 million
D) 60.77 million
E) 45.33 million
