You are given a group of possible investment projects for your company's capital. For each project, you are given the NPV the project would add to the firm, as well as the cash outflow required by each project during each year. Given the information in the file P06_40.xlsx, determine the investments that maximize the firm's NPV. The firm has $25 million available during each of the next five years. All numbers are in millions of dollars.

B C D E F G H J K L M N O P Q R S T U V W X Y 1 Capital budgeting 3 Note: All cash amounts are in $millions. 5 Cash outflows in various years, NPV of projects Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 Year 1 8 Year 2 9 Year 3 10 Year 4 11 Year 5 12 NPV 13 14 Selected projects (1 if selected, 0 if not) 15 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 16 17 18 Budget constraints 19 Outflow Budget 20 Year 1 21 Year 2 22 Year 3 23 Year 4 24 Year 5 25 26 Total NPV 27 28 29 30B C D E F G H K M N O P Q Capital budgeting Note: All cash amounts are in $millions. Cash outflows in various years, NPV of projects Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 Year 1 $1 $3 $4 $6 $5 $4 $2 $0 $1 $3 $9 $8 Year 2 $3 $4 $4 $5 $1 $5 $3 $0 $1 $2 $2 $7 Year 3 $2 $3 $3 $2 $2 $1 $3 $4 $4 $4 $1 $4 Year 4 $1 $1 $2 $2 $3 $5 $4 $6 $8 $1 $1 $1 Year 5 $2 $1 $3 $8 $5 $6 $7 $3 $6 $1 $1 $1 NPV $25 $30 $35 $40 $42 $20 $30 $31 $33 $35 $37 $38 Selected projects (1 if selected, 0 if not) Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 0 Budget constraints Outflow Budget Year 1 $23 $25 Year 2 $19 $25 Year 3 $24 $25 Year 4 $24 $25 Year 5 $24 $25 Total NPV $256