Consider the results from analyzing the following five projects Project Investment outlay Profitability Index AA $ 300,000 1 033 BB 400 000 1 050 CC 200,000 1 050 DD 100 000 1 100 EE 200 000 0,925 Suppose there is a limit on the capital budget of $600,000 Find the NPV for each project and determine which projects should be invested in, given that capital budget and what will be the total NPV (8 marks)

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Question: Consider the results from analyzing the following five projects: Project Investment/outlay Profitability Index AA $ 300,000 1.033 BB 400 000 1.050 CC 200,000 1.050 DD

Consider the results from analyzing the following five projects:

Project	Investment/outlay	Profitability Index
AA	$ 300,000	1.033
BB	400 000	1.050
CC	200,000	1.050
DD	100 000	1.100
EE	200 000	0,925

Suppose there is a limit on the capital budget of $600,000. Find the NPV for each project and determine which projects should be invested in, given that capital budget and what will be the total NPV? (8 marks)

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