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Budget for capital expenditures

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Problem: The Domer Inc. has a budget for capital expenditures this year.  Brenda is the CFO analyzing the information below with the several possible non mutually exclusive projects and their calculated net present value (NPV). 

ProjectInvestment Required ($ thousands)   Net Present Value (NPV) ($ thousands)

A                     500                                                      110

B                     600                                                      104

C                     400                                                      28

D                     525                                                      95

If the budget is $ 1.7 million, Brenda will undertake the following (_____) projects and if the budget is $ 1.2 million, Brenda will undertake the following (______) projects.

a. (A,B,D) and (B,D)

b. (B,C,D) and (A,D)

c. (A,B.D) and (A,B)

d. (A,B,C,D) and (A,B,C,D)

e. None of the above

Reference no: EM132459141

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