You are the finance manager for Monkey Manufacturing Company. You have identified 5 new projects that you are considering for the next financial year. The results of your analysis are presented in the table below:

Project	Initial	Payback	Net	Internal	Profitability
	Investment	Period	Present Value	Rate of Return	Index
	($million)	(years)	($million)	(%)
A	20.00	2.5	13.8	12.2
B	10.00	3.1	7.1	12.5
C	5.00	4.2	3.4	12.3
D	5.00	2.9	3.0	11.9
E	5.00	3.4	3.7	12.8

a) Calculate the profitability index for each investment

b) Which project or projects would you approve if your capital expenditure budget is $25 million?

c) If you have unlimited funds to invest, which project or projects would you approve?

d) How would your answer to Question C change if projects C, D, and E are mutually exclusive?