19. XYZ plc has 4 positive NPV projects. However, the one-period capital rationing applies. Therefore, ABC plc can spend only $1,200 for undertaking new projects. Project Investment NPV 1 600 300 2 200 180 3 400 210 4 300 100 Assuming that the projects are indivisible, it uses only the NPV as a measure of project profitability of the potential investments. Which is the optimal combination of projects and what is the total NPV? A. 1, 3 and 4; 1300 B. 1, 3 and 2; 690 C. 2, 1 and 3; 690 D. 2, 4 and 3; 900Project Investment (f) NPV (f) (2) Benefit-Cost Rank (1) Ratio (2) / (1) 1 600 300 0.5 3 3 400 210 0.525 2 2 200 180 0.9 4 300 100 0.33 4 Optimal Allocation and Maximum NPV: Projects Investment (E) NPV (E) 2 200 180 3 400 210 1 600 300 1200 690