XY Company is considering 5 investment projects as follows:

Project	Investment ($)	Profitability index (PI)
A	10,000	1.2
B	6,000	1.1
C	18,000	1.6
D	14,000	0.9
E	12,000	1.3

The company has $30,000 available for investment. Projects C and E are mutually exclusive. All projects can be undertaken only once and are not divisible.

Required:

(iii)Calculate the maximum NPV earned from the projects to be picked.

A.

Pick C, A, & part B; total NPV = $13,000

B.

Pick C, A, & B; total NPV = $13,400

C.

Pick C & A; total NPV = $12,800

D.

none of the above