Good-Names Co. is deciding how to best use their engineers for the projects listed below. If Good-Names Co. has 25 engineers, which project(s) should they choose to maximize the value of the firm? (2 marks)

Project	NPV	Number of engineers required
A	100	23
B	20	8
C	78	14
D	75	15

		Good-Names Co. should select Projects B and D.
		Good-Names Co. should select Projects A, B, C and D.
		Good-Names Co. should select Projects B and C.
		Good-Names Co. should select only Project A.

Which of the following statements is INCORRECT? (2 marks)

		A firm will increase its share price by reducing the total payout to shareholders.
		Cutting the firm's dividend to increase investment will raise the share price if, and only if, the new investments have a positive net present value (NPV).
		A firm can increase its growth rate by increasing its retention ratio.
		If the firm retains more earnings, it will have less to payout to shareholders.