Mutually exclusive projects 1 or 2

Afternoon.. Answer was 1,2.

They were less than 400 of total spend but generated the highest NPV. IRR was not relevant to the question.
 
I picked the ones that summed to under 400 K that had the highest combination of profitability index.
 
Well here you dont have to spend all the 400k ..
there is an answer which will use just 350k and generate max NPV ... since all the projects are conventional projects we should consider only the npv..

2 and 3 are the ones that get max I guess..
 
For the Mutual one, the question provided the IRR already. However, since it's mutual, u need to get the NPV to determine which one to choose. Ohterwise, u pick the higher IRR which is the wrong answer.
 
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