Need help with part B capital requirements and NPVs for the projects. Given a wi

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Need help with part B

capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars). Initial Capital Number of Research NPV (S) 10.1 19.0 22.0 25.0 60.2 Project Number Scientists 15 15 20 30 a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these projects? b. Suppose that Orchid currently has 12 research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these projects? The profitability index for Project V is 2.01. (Round to two decimal places.) Based on the profitability index, how should Orchid Biotech Company prioritize these projects? (Select from the drop-down menus.) Selected first V Selected second Selected third : II b. Suppose that Orchid currently has 12 research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these projects? The NPV/headcount ratio for ProjectsRound to one decimal place.) Enter your answer in the answer box and then click Check Answer

Explanation / Answer

NPV/Headcount = NPV/Number of scientists

For Project I = 10.1/2= $5.1/scientists

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