Use the Table for the Question(s)below

question 62

Multiple Choice

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 $600,000 available to invest in projects.If you invest in the optimal combination of projects given your capital constraint,then the total NPV for all the projects you invest in will be closest to:

• A)$65,000.
• B)$80,000.
• C)$69,000.
• D)$111,000.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied responds infinitely or extremely to a change in price.

Total Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Quantity Demanded

The specific amount of a product that consumers are willing to buy at a given price, assuming all other factors are held constant.