There are 4 Projects (mutually exclusive real asset projects) to choose from. The total budget is Rs.1, 000

Project Io=Investment (Rs) IRR NPV(Rs)

A: 200 40% 300

B: 100 40% 300

C: 300 35% 200

D: 800 30% 600

Which 3 projects you will choose from the above 4 real asset projects?

We cannot pick all 4 Projects because the Budget Constraint is 1000 and the total investment in all 4 Projects is 1400 (=200+100+300+800).