Question: 6. [6 marks] Consider the six projects described in the table below Project Capital Investment (year 0) PV of Net Benefits (excluding investment) A $120

6. [6 marks] Consider the six projects described in the table below Project Capital Investment (year 0) PV of Net Benefits (excluding investment) A $120 $155 B $105 $160 C $135 $320 D $45 $105 E $75 $95 F $100 $245 a. In a situation of a budget constraint, in what order would you rank these projects assuming all are perfectly divisible? [3 marks] b. Assume you have a limited budget of $250 to finance the capital costs and all are perfectly divisible, how would you allocate your budget? (Assume you must use up the full $250 budget.) [1.5 marks] c. Assume you have a limited budget of $250 to finance the capital costs and that the projects are indivisible (lumpy), which project or combination of projects would you select? (Assume you

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