Q.No.4: Consider the following scenario: You must chose between the following projects with highest weighted average Profitability Index (PI) keeping in view budgetary constraint of Rs. 500,000. Kindly suggest the best possible combination. Also calculate the equivalent annual cost for Projects A, B, C and D and rank these according to EAC from lower to higher (use 8% discount rate). Project NPV Investment PI 230,000 200,000 1.25 B 141,250 125,000 1.33 194,250 175,000 1.41 162,000 150,000 1.80 D