Natasha's Flowers, a local​ florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $940 per day to spend. Different flowers have different profit​ margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each​ type:   NPV per bunch Cost per bunch Max. Bunches Roses $2 $21 25 Lilies $9 $25 10 Pansies $4 $30 10 Orchids $19 $78 5

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Natasha's Flowers, a local​ florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $940 per day to spend. Different flowers have different profit​ margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each​ type:

 

NPV per

bunch

Cost per

bunch

Max.

Bunches

Roses

$2

$21

25

Lilies

$9

$25

10

Pansies

$4

$30

10

Orchids

$19

$78

5

What combination of flowers should the shop purchase each​ day?

The profitability index for each choice​ is:  (Round to three decimal​ places.)

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