Clipper plc is considering 5 project proposals. They are summarised below:

Project	Initial investment	Annual revenue	Annual fixed costs (cash outflows)	Life of project (years)
	(000)	(000)	(000)
A	10	20	5	3
B	30	30	10	5
C	15	18	6	4
D	12	17	8	10
E	18	8	2	15

Variable costs (cash outflows) are 40% of annual revenue. Projects D and E are mutually exclusive. Each project can only be undertaken once and each is divisible.

Assume

- The cash flows are confined to within the lifetime of each project.

- The cost of capital is 10%.

- No inflation.

- No tax.

- All cash flows occur on anniversary dates.

If the firm has a limit of 40,000 for investment in projects at Time 0, what is the optimal allocation of this sum among these projects, and what is the maximum net present value obtainable?