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 project 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 project should you invest in and in what order?
A) CBFH 
B) CBGF 
C) BCFG 
D) CBFG

Quizplus · Accepted Answer

A)
 11ea84dc_f55e_227b_9a63_db5df21d70f4_TB1316_00_TB1316_00 This is a tricky problem in which 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 C, B, F, and H.

Use the Table for the Question(s) Below