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Your firm has a choice of investing in a number of different projects. The Table below provides information on the individual projects. Assume that your

Your firm has a choice of investing in a number of different projects. The Table below provides information on the individual projects. Assume that your firm has enough cash to invest in all projects, but your firm is constrained in the total amount of factory space it can allocate. Specifically, it can only afford to allocate 200,000 square feet of factory space across different projects. Which combination of projects should it choose? Select the best one.

I.

Project E

II.

Projects A, C, F, and H

III.

Projects A, B, C, and G

IV.

Projects A and H

V.

Projects A, C, D, and F

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\begin{tabular}{|cccc|} \hline Project & Initial Investment (in $ millions) & NPV (in \$\$millions) & Square feet of factory space required (in 1,000 sqft) \\ \hline A & 90 & 160 & 50 \\ B & 10 & 25 & 30 \\ C & 20 & 60 & 50 \\ D & 60 & 40 & 50 \\ E & 120 & 190 & 200 \\ F & 70 & 50 & 50 \\ G & 90 & 20 & 70 \\ H & 100 & 190 & 150 \\ \hline \end{tabular}

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