k Consider the following four projects: Project Investment outlay ($) Pe 800,000 400,000 500,000 Se 1,400,000 NPV ($) 95,000 50,000 75,000 140,000 NPV per $ of investment 0.1187502 0.1250004 0.1500004 0.100000 K RA k Assume that projects P, Q, R and S are all infinitely divisible* and only $2,500,000 is available for investment. From any combination of the projects, and by fully utilizing all the $2.5 million available, what is the highest NPV achievable? + k * Note that if a project is invested-in fractionally, the NPV is pro-rated (i.e., an investment in 10 per cent of Qgenerates an NPV of $5,000)