21. CustomMetalworks is considering the expansion of their cable fabrication business for towers, rigging, winches, and many other uses. They have available $250,000 for investment and have identifi ed the following divisible alternatives, each of which will provide an exit with full return of the investment at the end of a 5 year planning horizon. Each year, CustomMetalworks will receive an annual return as noted below. MARR is 12%.

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 5 are divisible and investments 3 and 4 are indivisible. Use Excel® and SOLVER.

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Investment Initial Investment Annual Return 1 $25,000 $7,500 23460 $40,000 $12,000 $85,000 $20,000 $100,000 $22,000 5 $65,000 $17,000