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

-Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects you invest in will be closest to ________.
A) $111,000
B) $69,000
C) $80,000
D) $58,000

Question

Use the table for the question(s) below.
Consider the following list of projects:
 
-Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects you invest in will be closest to ________.
A) $111,000 
B) $69,000 
C) $80,000 
D) $58,000

Quizplus · Accepted Answer

B)
 11ea84dc_f55e_498d_9a63_2934a0a8248a_TB1316_00_TB1316_00 The optimal combination based upon PI rankings is CBFG, so the total
NPV = $20,000 + $30,000 + $10,000 + $9000 = $69,000

Use the Table for the Question(s) Below