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Terence Hanchin must determine what investment opportunities to undertake for The Lake Tahow Ski Resort. He is limited to a maximum expenditure of $1.5 million

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Terence Hanchin must determine what investment opportunities to undertake for The Lake Tahow Ski Resort. He is limited to a maximum expenditure of $1.5 million only for this capital budgeting period. If strict capital rationing for only the current period is assumed, what is the shareholders' wealth if you use Plin your evaluation using the table below? Project A. Extend ski lift 3 B. Build a new sports shop C. Extend ski lift 4 D. Build a new restaurant E. Build addition to house complex F. Build an indoor skating rink Amount (ICO) $500,000 150,000 350,000 450,000 200,000 400,000 PI 1.22 0.95 1.20 1.18 1.19 1.05 NPV 110,000 -133,500 70,000 81,000 38,000 20,000

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