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B. Problem Statement Saigon Company is planning to invest in several of eight (8

ID: 2794442 • Letter: B

Question

B. Problem Statement Saigon Company is planning to invest in several of eight (8) projects. However, it faces several constraints such as budgetary, maximum number of projects, and the relationship among projects (contingent and/or duplicative) The Company is seeking your assistance in selecting the projects that will maximize its Net Present Worth given the different set of constraints NPW $35,000 45,000 10,000 65,000 95.000 40,000 14,000 90,000 Projects Initial Cost $125,000 175,000 100,000 250,000 225,000 320,000 190,000 350.000 (xxx) = Negative NPW: MARR = 10%

Explanation / Answer

Answer:-

23. The best investment bundle consists of projects is

(c) BDEH

24. The NPW ($) of Best Investment Bundle is

(b) 295,000

25. The total cost ($) of the best investment bundle is

(c) 1,000,000