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You firm has $1,100,000 available to invest and has identified the following four potential projects (assume each has the same expected life span): Project Cost

You firm has $1,100,000 available to invest and has identified the following four potential projects (assume each has the same expected life span): Project Cost NPV B A -$200,000 $22,500 $475,000 - $500,000 C -$390,000 $45,400 D - $90,000 $9,900 All four projects have a positive NPV. The NPV decision rule says to accept all four, but the total cost of investing in all projects is higher than what the firm has available. Which combination of projects can the firm accept that will offer the highest total expected NPV? What is the highest total NPV the firm can expect given the limited budget? LO3 O The firm should select projects B, C, and D. The total expected NPV from these three projects is $130,300. The firm should select projects A, B, and D. The total expected NPV from these three projects is $153,200. O The firm should select projects A, B, and C. The total expected NPV from these three projects is $142,900. O The firm should select projects A, C, and D. The total expected NPV from these three projects is $171,450.
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You firm has \$1,100,000 availoble to invest and has identified the following tour polential projects fassume eoch has the same expected life span): what the fam hos avolable. Which combination of projects can the fim accept thot wil ofter the highest fotol expected Nivi what is the Wighet tolor NPV the lim can expecl given the limiled budgeta 103 The firm should select brojects B, C, and D. The fotal expected NPV from thewe three projects is $130,300 The firm should select projects A,8, and D, the Jolal expected NPV from these thee projects $153,200 The firm should select projects A. 8, and C. The folat expected NPV from these three projects is $142,400 The firm thould select projects A, C, and D. The folat expected NPV from these three projects is $171,450

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