Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars).

Project Number	Initial Capital ($ million)	Number of Research Scientists	NPV ($ million)
I	10	2	10.1
II	15	3	19.0
III	15	4	22.0
IV	20	3	25.0
V	30	12	60.2

a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects?

b. Suppose in addition that Orchid 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, Orchid had 15 research scientists available, explain why the profitability index cannot be used to prioritize projects. Which projects should it choose now?

a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects?

Fill in the table below with the profitability index for each project based on the dollar amounts. (Round to two decimal places.)

Project Number	Profitability Index
I
II
III
IV
V