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

question 38

Multiple Choice

The following table gives the available projects (in $millions) for a firm. $\begin{array}{rrrrrrll}\underline { \mathrm { A }} & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } & \underline { \mathrm { E } } & \underline { \mathrm { F } } & \underline { \mathrm { G } } & \\5.0 & 4.0 & 5.0 & 1.0 & 2.0 & 7.0 & 8.0 & \text { Initial investment } \\1.5 & -0.5 & 1.0 & 0.5 & 0.5 & 1.0 & 1.0 & \mathrm{NPV}\end{array}$ 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

---

Definitions:

Gross Domestic Product

The total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Gross Domestic Product

The aggregate market or monetary valuation of all completed products and services generated inside the boundaries of a country during a designated period.

Final Good

A product or service that is consumed by the end user and does not require further processing or manufacturing.

Restaurant

A business establishment where meals or refreshments may be purchased and consumed by patrons.