Solve the following capital budgeting problem using the linear programming model and a spreadsheet. Three projects are to be evaluated at an MARR of 12.5% per year with no more than $3.0 million invested. Determine which project(s) should be selected and the Z value. Project 1 2 3 Investment, $ millions Select project(s) (Click to select) The Z value is $ -0.9 -2.1 -1.0 Life, Years 6 10 5 Estimated NCF, $ per Year Year 1 250.000 385,000 200,000 Gradient After Year 1 -5000 +5000 +25%

Solve the following capital budgeting problem using the linear programming model and a spreadsheet. Three projects are to be evaluated at an MARR of 12.5% per year with no more than $3.0 million invested. Determine which project(s) should be selected and the Z value. Project 1 2 3 Investment, $ millions Select project(s) (Click to select) The Z value is $ -0.9 -2.1 -1.0 Life, Years 6 10 5 Estimated NCF, $ per Year Year 1 250.000 385,000 200,000 Gradient After Year 1 -5000 +5000 +25%

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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