Question
A consulting firm is considering a set of projects for the upcoming fiscal year. The firm would like to pursue all projects, but is constrained
A consulting firm is considering a set of projects for the upcoming fiscal year. The firm would like to pursue all projects, but is constrained by the number of consultants available for new projects. The firm has 100 consultants that can be used for new projects. The estimated NPV and consultants used for each project is shown below:
| PROJECT | NPV | Consultants Used |
| A | $800 | 40 |
| B | $600 | 25 |
| C | $350 | 15 |
| D | $1,000 | 60 |
| E | $800 | 30 |
Which projects should the firm select to maximize shareholder value?
| a. | Projects A,B, and C |
| b. | Projects A and D |
| c. | Projects A, C, and E |
| d. | Projects B, C, and D |
| e. | Projects A, B, and E |
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
