You are chairperson of the investment committee at your firm. Five projects have been submitted to your committee for approval this month. The investment required and the project profitability index for each of these projects are presented in the following table:

If you have $500,000 available for investments, which of these projects would you approve? Assume that you do not have to worry about having enough resources for future investments when making thisdecision.

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Project Investment PI 2.500 2.000 1.750 1.000 0.800 $20,000 50,000 ERI 70,000 10,000 80,000