Imperial Systems has $1 million available for capital investments during the current year. A list of possible investment projects, together with their net investments and net present values, is provided in the following table:

Project	Net Investment			Net Present Value
1		$130,000			$11,000
2		100,000			8,000
3		430,000			70,000
4		135,000			12,000
5		340,000			39,000
6		170,000			-7,000
7		300,000			21,000
8		110,000			4,000

1. & b. Compute the investment projects profitability indexes and rank them in descending order. Which projects should be adopted considering the capital constraints? Round the profitability index values to three decimal places.

   Project	PI	Rank	Should the project be adopted?
   1			-Select-YesNoItem 3
   2			-Select-YesNoItem 6
   3			-Select-YesNoItem 9
   4			-Select-YesNoItem 12
   5			-Select-YesNoItem 15
   6			-Select-YesNoItem 18
   7			-Select-YesNoItem 21
   8			-Select-YesNoItem 24

   Calculate the aggregate net present value. Round the answer to the nearest dollar. $

   Calculate the expended capital funds. Round the answer to the nearest dollar. $

   Are all capital funds expended? -Select-YesNoItem 27

3. Is there another combination that produces a higher aggregate net present value than the one developed in Parts a.&b.? Round the NPV value to the nearest dollar.

   -Select-NoYesItem 28 , -Select-projects 3, 5, 1, and 2projects 3, 5, 1, and 8projects 8, 1, 2, and 6projects 5, 1, 2, and 6no combinationItem 29 . The highest NPV is $ .

4. If less than the entire amount of available funds is invested, what is the opportunity cost of the unused funds?

   The opportunity cost of the unexpended funds is the amount of the unexpended funds -Select-dividedmultipliedItem 31 by -Select-the firm's cost of capitalthe internal rate of return of the projectItem 32 .