20. Polaris Industries has $1,250,000 available for additional innovations on the Victory Vision motorcycle. These include the fi ve divisible, equal-lived alternatives, each of which guarantees the investment can be exited after 6 years with the initial investment returned. In addition, each year Polaris will receive an annual return as noted below. MARR is 15%.

a. Determine the optimum portfolio, including which investments are fully or partially (if partial, give percentage) selected. You may use Excel®;
do not use SOLVER.

b. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage) selected using (1) the current limit on investment capital, (2) plus 20%, and (3) minus 20%. Use Excel®
and SOLVER.

c. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage) selected using (1) the current MARR, (2) plus 20%, and (3) minus 20%. Use Excel® and SOLVER.

d. Determine the optimum investment portfolio and its PW when investments 1, 2, and 3 are indivisible and investments 4 and 5 are divisible. Use Excel® and SOLVER.

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Investment Initial Investment Annual Return 1 $350,000 $90,000 2345 $300,000 $85,000 $250,000 $75,000 $500,000 $130,000 $400,000 $115,000