Use the table for the question(s) below.
Consider the following list of projects:

-Assuming that your capital is constrained,so that you only have $600,000 available to invest in projects,which four projects should you invest in and in what order?
A) CBFH
B) CBGF
C) BCFG
D) CBFG

Question

Use the table for the question(s) below.
Consider the following list of projects:
 
-Assuming that your capital is constrained,so that you only have $600,000 available to invest in projects,which four projects should you invest in and in what order?
A) CBFH 
B) CBGF 
C) BCFG 
D) CBFG

Quizplus · Accepted Answer

A)
 11ea7e5a_6e4d_a577_9a0a_63d716856884_TB1623_00 This is a tricky problem in that by the rankings CBFG seem optimal, but this combination leaves $120,000 on the table uninvested. By replacing G with H the full $600,000 is invested and the NPV of the combination of projects is increased by $11,000. Therefore you should invest in projects CBFH.

Use the Table for the Question(s) Below