Use the Table for the Question(s)below

question 46

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 $500,000 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)$111,000.
• B)$69,000.
• C)$80,000.
• D)$58,000.

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Definitions:

Tax

A mandatory monetary fee or a different kind of tax placed on an individual or entity by a government agency.

Producer Surplus

The gap between the minimum amount that sellers are prepared to accept for a product or service and the higher price they actually get.

Consumer Surplus

The deviation between what consumers intend and are able to spend on a good or service compared to their final payment.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public expenditure, creating government revenue.