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Six projects have been identified for possible implementation by a company that

ID: 1160489 • Letter: S

Question

Six projects have been identified for possible implementation by a company that makes dry ice blasters, machines that propel tiny dry ice pellets at supersonic speeds so they flash freeze and then lift grime, paint, rust, mold, asphalt, and other contaminants off in-place machines and a wide range of surfaces. The present worth of each project has been determined. Identify all acceptable mutually exclusive bundles if the budget limitation is $20,000. Arrange the acceptable bundles in such a way that the total PW values are in ascending order.

Project Project PW at 15%, $ L 29,000 M 11,000 N 41,000 O 35,000 P 6,000 Q 2,000

Explanation / Answer

Present worth shouldnot exceed budget limitation

In our case Budget limitation is $20,000 and we have possible combination of projects which will satisfy above criteria

Project Present Worth

Q $2000

P $6000

PQ $8000

M $11000

MQ $13000 ($11000+$2000)

MP $17000 ($11000+$6000)

These are 6 possible combination which satisfy our criteria

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