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A company has several investment projects under consideration, all with positive net present values. However, due to a shortage of trained personnel, a limit of

A company has several investment projects under consideration, all with positive net present values.

However, due to a shortage of trained personnel, a limit of $1,250,000 has been placed on the capital budget for this year.

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Which of the projects listed below should be included in this year's capital budget? Explain your answer.

Project Initial Outlay A $250,000 B 250,000 100,000 D 375,000 E 375,000 NPV $325,000 350,000 700,000 112,500 75,000

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