You are in charge of one division of Yeti Surplus Inc.Your division is subject to capital rationing.Your division has 4 indivisible projects available,detailed as follows: If you must select projects subject to a budget constraint of 5 million dollars,which set of projects should be accepted so as to maximize firm value?
A)Projects 1,2 and 3
B)Project 1 only
C)Projects 1 and 4
D)Projects 2,3 and 4

Question

You are in charge of one division of Yeti Surplus Inc.Your division is subject to capital rationing.Your division has 4 indivisible projects available,detailed as follows:  If you must select projects subject to a budget constraint of 5 million dollars,which set of projects should be accepted so as to maximize firm value?
A)Projects 1,2 and 3 
B)Project 1 only 
C)Projects 1 and 4 
D)Projects 2,3 and 4

Quizplus · Accepted Answer

The Answer of You are in charge of one division of Yeti Surplus Inc.Your division is subject to capital rationing.Your division has 4 indivisible projects available,detailed as follows:  If you must select projects subject to a budget constraint of 5 million dollars,which set of projects should be accepted so as to maximize firm value?
A)Projects 1,2 and 3 
B)Project 1 only 
C)Projects 1 and 4 
D)Projects 2,3 and 4

You Are in Charge of One Division of Yeti Surplus