B and C
Together
Total
Combinations
A
B
C
D
E
Cost
NPV
Added NPV
NPV
AB
1
1
0
0
0
$1,500,000
$320,000
$0
$320,000
AC
Not feasible because A and C mutually exclusive
AD
1
0
0
1
0
$1,900,000
$380,000
$0
$380,000
AE
1
0
0
0
1
$1,200,000
$290,000
$0
$290,000
BC
0
1
1
0
0
$1,300,000
$300,000
$80,000
$380,000
BD
0
1
0
1
0
$1,400,000
$300,000
$0
$300,000
BE
0
1
0
0
1
$700,000
$210,000
$0
$210,000
CD
0
0
1
1
0
$1,700,000
$360,000
$0
$360,000
CE
0
0
1
0
1
$1,000,000
$270,000
$0
$270,000
DE
0
0
0
1
1
$1,100,000
$270,000
$0
$270,000
ABC
Not feasible because A and C mutually exclusive
ABD
1
1
0
1
0
$2,400,000
Over budget
ABE
1
1
0
0
1
$1,700,000
$410,000
$0
$410,000
ACD
Not feasible because A and C mutually exclusive
ACE
Not feasible because A and C mutually exclusive
ADE
1
0
0
1
1
$2,100,000
Over budget
BCD
0
1
1
1
0
$2,200,000
Over budget
BCE
0
1
1
0
1
$1,500,000
$390,000
$80,000
$470,000
Maximum NPV
is $470,000 by
doing BC and E
BDE
0
1
0
1
1
$1,600,000
$390,000
$0
$390,000
CDE
0
0
1
1
1
$1,900,000
$450,000
$0
$450,000
ABCD
Not feasible because A and C mutually exclusive
ABCE
Not feasible because A and C mutually exclusive
ABDE
1
1
0
1
1
$2,600,000
Over budget
ACDE
Not feasible because A and C mutually exclusive
BCDE
0
1
1
1
1
$2,400,000
Over budget
ABCDE
Not feasible because A and C mutually exclusive