Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of

$1,000

per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each type:

	NPV per bunch	Cost per bunch	Max. Bunches
Roses	$3	$20	25
Lilies	$8	$30	10
Pansies	$4	$30	10
Orchids	$20	$80	5

What combination of flowers should the shop purchase each day?

Question content area bottom

Part 1

The profitability index for each choice is: (Round to three decimal places.)

	NPV per bunch	Cost per bunch	Max. Bunches	Profitability Index (per bunch)
Roses	$3	$20	25	enter your response here