Which of the Following Proposed Projects Should Be Accepted for the Upcoming

question 14

Multiple Choice

Which of the following proposed projects should be accepted for the upcoming year since only $6 million is available for the next year's capital budget. What is the total NPV of the projects that should be accepted?

• A) A, B, & F; total cost = $5.5 million; Total NPV = $1.57
• B) F, B, & D; total cost = $6 million; Total NPV = $1.72
• C) E, F, & D; total cost = $5.5 million; Total NPV = $1.45
• D) A, E, & F; total cost = $5 million; Total NPV = $1.3

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Definitions:

Elasticity of Supply

Elasticity of supply measures the responsiveness of the quantity supplied of a good or service to a change in its price.

Shifting Resources

The reallocation of resources from one use to another, often in response to changing economic conditions or priorities.

Software Upgrade

The process of replacing a software version with a newer, often more improved or secure version.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.