Capital rationing (Indivisible)

Hi John,

I think I’ll have more questions for you 🙂

In the question about Capital rationing, there are 5 projects (A, B, C, D, E) with required outlays and NPVs.

Project A 150,000 NPV 65,000
Project B 120,000 NPV 50,000
Project C 200,000 NPV 80,000
Project D 80,000 NPV 30,000
Project E 400,000 NPV 120,000

Fist part (divisible) I’ve calculated correctly.

As I understood from the lecture when we calculate capital rationing indivisible we use all possible combinations in order to find the highest NPV, from the options given to us in the question.
And I did so … I had 9 combinations and the highest NPV I got was B, C, E = $250.000

I BPP answer there were listed just 3.
A, B, D = 145,000
B, C, D = 160,000
E = 120,000
and next to them the outlay amounts were shown. Therefore the optimum combination with highest NPV is B, C, D.

Do I also had to take into account the amounts of outlay? Did I miss something?

Thanks,
Yana.