The following table gives the available projects (in $millions) for a firm. $\begin{array} { r r r r r r r l }
\underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } & \underline { \mathrm { E } } & \underline { \mathrm { F } } & \underline { \mathrm { G } } & \
90 & 20 & 60 & 50 & 150 & 40 & 20 & \text { Initial investment } \
140 & 70 & 65 & - 10 & 30 & 32 & 10 & \mathrm { NPV }
\end{array}$
If the firm has a limit of $210 million to invest, what is the maximum NPV the company can obtain?
A)200
B)283
C)307
D)347

Question

The following table gives the available projects (in $millions) for a firm. $\begin{array} { r r r r r r r l } 
\underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } & \underline { \mathrm { E } } & \underline { \mathrm { F } } & \underline { \mathrm { G } } & \
90 & 20 & 60 & 50 & 150 & 40 & 20 & \text { Initial investment } \
140 & 70 & 65 & - 10 & 30 & 32 & 10 & \mathrm { NPV }
\end{array}$
 If the firm has a limit of $210 million to invest, what is the maximum NPV the company can obtain?
A)200
B)283
C)307
D)347

Quizplus · Accepted Answer

The firm should choose projects B, C, E, and F, which total $210 million in initial investment and provide the maximum NPV of 307.

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