Company XYZ has five positive NPV projects but does not have enough liquidity to take all of them The investments and the corresponding NPVs are listed below (unit in million) Project 1 2 3 4 5 Investment 4 5 3 2 5 5 5 1 NPV 65 60 28 150 20 In particular, XYZ only has 10 million available for investments To maximize profit, which projects should be chosen a 3, 4, and 5 b 1, 2, and 3 c 1 and 4 d 2, 4, and 5

Question: Company XYZ has five positive-NPV projects but does not have enough liquidity to take all of them. The investments and the corresponding NPVs are listed

Company XYZ has five positive-NPV projects but does not have enough liquidity to take all of them. The investments and the corresponding NPVs are listed below (unit in £ million).

Project #	1	2	3	4	5
Investment	4.5	3	2.5	5.5	1
NPV	65	60	28	150	20

In particular, XYZ only has £ 10 million available for investments. To maximize profit, which projects should be chosen?

a. 3, 4, and 5.

b. 1, 2, and 3.

c. 1 and 4.

d. 2, 4, and 5.

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