Example Problem . Suppose your firm has the following five positive NPV projects to choose from. However, there is not enough manufacturing space in your plant to select all of the projects. Use profitability index to choose among the projects, given that you only have 100,000 square feet of unused space. Project NPV Square feet needed Project 1 100,000 40,000 Project 2 88,000 30,000 Project 3 80,000 38,000 Project 4 50,000 24,000 Project 5 12,000 1,000 Total 330,000 133,000