Hotel Amazing made a list of various independent projects it wants to launch with a fixed capital budget of $5.5 million. Management established that any unused portion of the fixed capital budget will earn less than the cost of capital of 12%,

Project Investment PA of inflows at 12%

A. 4900000 5600000

B. 900000 1250000

C. 2100000 2250000

D. 1600000 1800000

E. 750000 920000

F. 2600000 3100000

G. 12500000 1310000

1. select the best group of project to be accepted if project is divisible (8)
2. select the best group of project to be accepted if project is indivisible (10)
3. State the difference in NPV terms between project divisibility and project indivisibility (2)