Your company has $$230$ million to spend in Year $1$ on capital investment projects. The Year $1$ required spending, mean NPV$,$ and sigma of the NPV for each project are shown in the spreadsheet. Also shown is the effect of the market conditions on the mean NPV and sigma NPV$.$ NPV for projects can be assumed to be normally distributed. The effect on mean NPV and Sigma NPV in the table should be read as follows. If the effect is $-30\%,$ then the NPV is now $70\%$ of the old value. If the effect is $+35\%,$ then the NPV is now $135\%$ of the old value.

Remember that the market conditions apply to all projects. If the market conditions are fair for project $1,$ then they are fair for all of the projects

Determine which projects to select such that we stay within the $$230$ Million Spend and have the smallest variation in NPV $($you can use standard deviation as a measure$)$ across the selected projects while selecting at least $3$ projects. Effect on Mean NPV Effect on Sigma NPV

Market Conditions Probability Projects$1-4$ Projects $5-7$ Projects $8-10$ Projects $1-10$

Good $0\mathrm{.}645\%-24\%10\%-40\%$

Fair $0\mathrm{.}250\%5\%10\%-60\%$

Poor $0\mathrm{.}15-34\%15\%-25\%-65\%$