The firm is planning to invest up to 65 million next year. The information about the available investment projects is given in the table below.

A.Assuming the projects are not divisible, use the profitability index(PI) as a criterion to determine the value-maximizing combination of projects. Show the calculations of the profitability indexes in the final column of the table.

Project Profitability index B Initial investment, Internal rate of millions of return 50 15% 35 19% 30 28% Net present value millions of 12 15 42 D E F G H 25 15 10 10 1 26% 20% 37% 25% 18% 1 10 11 13 0.1