A company has a maximum of $2 million to invest and has identified four viable projects, E, F, G and H. The initial investment for each of the projects is the maximum amount that can be invested in the project, but any amount up to the maximum can be invested. The projects are divisible. The projects have been evaluated using net present value, as below. All figures are $ millions.
A. Project F
B. Project E
C. Project H
D. Project G
Answer:
A In which project should the company invest $2 million?
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