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An auto manufacturing company is preparing a capital budget and considering four long-term investments

Finance

An auto manufacturing company is preparing a capital budget and considering four long-term investments. The net present value of each project is as follows:

  • Project A: 0.25
  • Project B: 0
  • Project C: -0.5
  • Project D: 1.5

In theory, which two projects should the company pursue?

  • Projects A and B
  • Projects B and D
  • Projects A and D
  • Projects B and C

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