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The Following Table Gives the Available Projects (In $Millions)for a Firm

Question 53

Multiple Choice

The following table gives the available projects (in $millions) for a firm. ABCDEFG5.04.05.01.02.07.08.0 Initial investment 1.50.51.00.50.51.01.0NPV\begin{array} { l l l l l l l l } \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } & \underline { \mathrm { E } } & \underline { \mathrm { F } } & \underline { \mathrm { G } } & \\5.0 & 4.0 & 5.0 & 1.0 & 2.0 & 7.0 & 8.0 & \text { Initial investment } \\1.5 & - 0.5 & 1.0 & 0.5 & 0.5 & 1.0 & 1.0 & \mathrm { NPV }\end{array}
The firm has only 20 million to invest.What is the maximum NPV that the company can obtain?


A) 3.5
B) 4.0
C) 4.5
D) 5.0

Correct Answer:

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