6. 4.53 Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled oil sales with Ford is a part of the requirement. Develop all possible mutually exclusive bundles under the additional following restrictions and select the best projects. The corporate MARR is 10% per year.
1.

a. Initially determine PW values for each vendor using tabulated factors and spreadsheet functions.
2.

b. A maximum of $4 million can be spent.
3.

c. A larger budget of $5.5 million is allowed, but no more than two vendors can be selected.
4.

d. There is no limit on investment.
Table Summary: Table divided into 4 columns with the headings marked from left to right as: Vendor; Initial Investment in dollars; Life in years; and Annual Net Revenue in dollars per year.
Vendor Initial Investment, $
Life, Years Annual Net Revenue, $/Year A −1.5 million 8 360,000 B −3.0 million 10 600,000 C −1.8 million 5 620,000 D −2.0 million 4 630,000