Use the Table for the Question(s) Below

question 71

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 net present value (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:

Directors

Individuals elected by shareholders to manage and oversee the affairs of a corporation, forming its board.

Inside Information

Material, nonpublic, factual data that can be used to buy or sell securities at a profit.

Nonpublic

Information or entities not available or accessible to the general public, often pertaining to private or confidential matters.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.