Lewis Services is evaluating six investment opportunities (projects). The following table reflects each project's net preser value NPV and the respective initial investments required. All o these projects are independent. Project NPV Investment 2,500 2,500 4,000 20,000 II 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? O I, II, III, V, and VI O I, II, and VI OI, II, V, and VI O I, II, III, IV, V, and VI

Survey of Accounting (Accounting I)
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Author:Carl Warren
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Chapter15: Capital Investment Analysis
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Lewis Services
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
2,500
2,500
4,000
20,000
II
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?
O I, II, II, V, and VI
O I, II, and VI
O I, II, V, and VI
OI, II, III, IV, V, and VI
Transcribed Image Text: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 2,500 2,500 4,000 20,000 II 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? O I, II, II, V, and VI O I, II, and VI O I, II, V, and VI OI, II, III, IV, V, and VI
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