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The following table presents different projects with their respective Net Present Values (NPV)s and initial investment. A capital constraint of 5.5m has been imposed

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The following table presents different projects with their respective Net Present Values (NPV)s and initial investment. A capital constraint of 5.5m has been imposed on the total initial investment. The projects are divisible and each may be undertaken only once. What is the maximum NPV available from the following projects? Hint: Rank the projects based on the benefit-cost ratios. figure1.jpg Project NPV (m) Initial investment (m) A 3 3.5 B 2 1 C 5 3 D 10 10 E 2 1.5

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