The Following Table Gives the Available Projects (In $Millions)for a Firm

question 3

Multiple Choice

The following table gives the available projects (in $millions) for a firm. $$\begin{array} { l l l l l l l l } \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } & \underline { \mathrm { E } } & \underline { \mathrm { F } } & \underline { \mathrm { G } } & \\5.0 & 4.0 & 5.0 & 1.0 & 2.0 & 7.0 & 8.0 & \text { Initial investment } \\1.5 & - 0.5 & 1.0 & 0.5 & 0.5 & 1.0 & 1.0 & \mathrm { NPV }\end{array}$$
The firm has only 20 million to invest.What is the maximum NPV that the company can obtain?

• A)3.5
• B)4.0
• C)4.5
• D)5.0

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Definitions:

Labor-Intensive

Describing a process or type of work that requires a large amount of manual labor compared to the amount of capital invested or technology used.

High-Maintenance

Describing something or someone requiring a lot of time, attention, or resources to manage or maintain.

Moderately Labor-Intensive

Describing activities or processes that require a fair amount of human labor to complete.

Labor-Intensive

Describing tasks, processes, or industries that require a large amount of manual work relative to the investment in machinery.