The Able Company has identified the investment proposals shown below as acceptable. However, only $30 000 can be made available for investment.
$\begin{array}{ccc}
& \text { Investment } & \text { Net Present } \
\underline{\text { Proposal }} & \underline{\text { Required }} & \underline{\text { Value }}\
\mathrm{A} & \$ 10000 & \$ 5000 \
\text { B } & 20000 & 8000 \
\text { C } & 20000 & 7000 \
\text { D } & 10000 & 4000 \
\text { E } & 10000 &30000
\end{array}$

Required:
Determine the combination of proposals to be selected using the maximum net present value approach.

Question

The Able Company has identified the investment proposals shown below as acceptable. However, only $30 000 can be made available for investment.
 $\begin{array}{ccc}
& \text { Investment } & \text { Net Present } \
 \underline{\text { Proposal }} &  \underline{\text { Required }} &  \underline{\text { Value }}\
\mathrm{A} & \$ 10000 & \$ 5000 \
\text { B } & 20000 & 8000 \
\text { C } & 20000 & 7000 \
\text { D } & 10000 & 4000 \
\text { E } & 10000 &30000
\end{array}$

Required:
Determine the combination of proposals to be selected using the maximum net present value approach.

Quizplus · Accepted Answer

The Answer of The Able Company has identified the investment proposals shown below as acceptable. However, only $30 000 can be made available for investment.
 $\begin{array}{ccc}
& \text { Investment } & \text { Net Present } \
 \underline{\text { Proposal }} &  \underline{\text { Required }} &  \underline{\text { Value }}\
\mathrm{A} & \$ 10000 & \$ 5000 \
\text { B } & 20000 & 8000 \
\text { C } & 20000 & 7000 \
\text { D } & 10000 & 4000 \
\text { E } & 10000 &30000
\end{array}$

Required:
Determine the combination of proposals to be selected using the maximum net present value approach.

The Able Company Has Identified the Investment Proposals Shown Below