Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation
Question:
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.
a. A maximum of $4 million can be spent.
b. A larger budget of $5.5 million is allowed, but no more than two vendors can be selected.
c. There is no limit on spending.
Initial Life, Annual Net Vendor Investment, $ Years Revenue, $ per 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
Step by Step Answer:
Basics Of Engineering Economy
ISBN: 9780073376356
2nd Edition
Authors: Leland T. Blank, Anthony Tarquin