What confuses me is that sea breeze had a profitability index of 3.026 and still was left off as a choice. Also, the 3 options I highlighted add up to a total that is higher(3.026+1.983+1.268= 6.277) than the sum of Mountain Ridge and West Ranch (1.983+2.516=4.499).

So how come Mountain Ridge and West Ranch are the two options selected in each multiple choice below?

A. Profitability index fails because the?top-ranked projects do not completely use up the budget. In this?case, you should take Mountain Ridge and West Ranch.

B. Profitability index can still be used to select projects as before. In this?case, you should take Mountain Ridge and West Ranch.

C. Profitability index still?works, but you need to make sure that all projects not taken on have a profitability index less than the ones that are taken on. In this?case, you should take Mountain Ridge and West Ranch.

D. Profitability index fails in this case because now the budget is too low to accept the top ranked projects in order. In this?case, you should take Mountain Ridge and West Ranch

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