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OB Company is evaluating several development projects. The company has come up with the following estimates of the initial capital requirements and NPVs for the

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OB Company is evaluating several development projects. The company has come up with the following estimates of the initial capital requirements and NPVs for the projects. The company has also estimated the number of scientists required for each development projects. Project Initial Capital N Scientists NPV 10 000 000 2 10 100 000 15 000 000 19 000 000 C 15 000 000 22 000 000 D 20 000 000 25 000 000 E 30 000 000 12 60 200 000 B 3 4 3 a. Suppose that OB has a total capital budget of 60 millione. How should it prioritize these projects? b. Suppose in addition that OB currently has only 12 research scientists and does not anticipate being able to hire any more in the near future. How should Orchid prioritize these projects? c. If instead, OB had 15 research scientists available, explain why the profitability index ranking cannot be used to prioritize projects. Which projects should it choose now

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