1. (Capital budgeting) A firm is considering funding several proposed projects that have the financial properties shown in Table 56. The available budget is $600,000. What set of projects would be recommended by the approximate method based on benefit-cost ratios? What is the optimal set of projects?

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TABLE 5.6 Financial Properties of Proposed Projects Project Outlay ($1,000) Present worth ($1,000) 12345 100 200 300 500 200 300 150 200 150 250