Table 10-1. Capital Budgeting Choices

Business Location	Capital Investment Cost in $	Cumulative Investment Costs	Net Present Value
1	25,000	25,000	27,500
2	28,500	53,500	35,000
3	32,500	86,000	35,000
4	32,500	118,500	38,000
5	45,000	163,500	(15,000)
6	54,000	217,500	(10,000)
7	63,250	280,750	92,000
8	73,000	353,750	100,000

Refer to Table 10-1. Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment. Glen calculated the net present value of each recommendation. Glen estimates that he will have no more than $150,000 to invest next year. Based on the projects chosen, how much will he actually invest?

		$136,250
		$290,500
		$145,000
		$299,750