Question: Determine which projects to select under capital rationing. Project Initial Investment NPV M $80,000 $15,000 N $100,000 $20,000 O $150,000 $30,000 P $120,000 $25,000 Which

Determine which projects to select under capital rationing.

Project

Initial Investment

NPV

M

$80,000

$15,000

N

$100,000

$20,000

O

$150,000

$30,000

P

$120,000

$25,000

Which projects should be selected if the budget is $200,000? 

Which projects should be selected if the budget is $250,000? 

Requirement: Determine which projects to select under different budget constraints.

Which projects should be selected if the budget is $180,000? 

Which projects should be selected if the budget is $300,000? 

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