Your Firm Has $4,000,000 Available for Investment in Capital Projects

question 96

Multiple Choice

Your firm has $4,000,000 available for investment in capital projects.Which combination of projects is the best,given this budget constraint? $$\begin{array} { | c | c | c | } \hline \text { Project } & \text { Initial Investment } & \text { NPV } \\\hline \text { A } & \$ 1,000,000 & \$ 150,000 \\\hline \text { B } & \$ 500,000 & \$ 200,000 \\\hline \text { C } & \$ 1,500,000 & \$ 175,000 \\\hline \text { D } & \$ 1,750,000 & \$ 135,000 \\\hline\end{array}$$

• A)A,B,C
• B)A,B,D
• C)A,C,D
• D)B,C,D

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