Use the Table for the Question(s)below

question 131

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 $600,000 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)$65,000
• B)$80,000
• C)$69,000
• D)$111,000
• E)$70,000

---

Definitions:

Compounded Monthly

Interest calculation method where interest earned is added to the principal so that, from that moment on, the interest that has been added also earns interest.

Equal Contributions

A setup where all participants in a financial arrangement contribute the same amount.

Retirement Plan

A financial strategy designed to provide individuals with income or assets to rely on after they have ceased working, often involving savings, investments, and other financial products.

Compounded Semi-annually

This refers to the practice of applying interest to an existing amount plus any accumulated interest twice yearly.