Lewis Services is evaluating six investment opportunities (projects). The following table reflects each project’s net present value NPV and the respective initial investments required. All of these projects are independent.
Project NPV Investment
I 2,500 2,500
II 4,000 20,000
III 7,500 30,000
IV 8,000 40,000
V 2,000 10,000
VI 2,500 5,000
Lewis has an investment constraint of P50,000. Which combination of projects would represent the optimal investment that should be recommended to Lewis Services’ management?
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