From the five independent projects shown below, the one(s) to select with a capital limitation of $35,000 is/are: (choose one)

(a) P

(b) PT

(c) T

(d ) Q


There are 7 possible bundles under the $35,000 limit: P, Q, R, T, PR, and PT. Largest PW = $23,800 is for projects P and T at an initial investment of $32,000.

Answer is (b) PT

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