23. Yaesu America wishes to enhance their already fi ne line of electronic equipment for commercial and individual use. Their engineering staff has proposed 5 independent, divisible, equal-lived investments, cutting across different product lines, with each estimated to return the initial investment if it is exited after a planning horizon of 5 years. In addition, each year, Yaesu is projected to receive an annual return as noted below. They have available

$1,250,000 to invest and their MARR is 10%.

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 2 and 4 are divisible and investments 1, 3, and 5 are indivisible. Use Excel® and SOLVER.

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Investment Initial Investment Annual Return 1 $400,000 $50,000 2345 $300,000 $36,000 3 $200,000 $25,000 $600,000 $69,000 $500,000 $55,000