Capital Records is considering several independent projects, all with positive net present values. However, a budget constraint of $1,550,000 has been placed on the capital budget for this year. Which of these projects should be included in this year's capital budget and why did you pick these projects? What problems do you see with picking projects in this way?

Initial

Project Investment NPV

A $250,000 $325,000

B 300,000 350,000

C 1,000,000 700,000

D 375,000 275,000

E 400,000 450,000

F 1,200,000 900,000