24. Suppose your own consulting fi rm has been doing well and you believe it is time to make a move to add a new, related area of engineering services. To do so, you have identifi ed the following 5 independent, divisible, equal-lived investments, each of which guarantees you can exit it after 4 years and have your initial investment returned to you. Each year, you receive an annual return as noted below. Your MARR is 10% and you have $250,000 to invest.

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

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Investment Initial Investment Annual Return 1 $45,000 $4,000 2345 $60,000 $7,000 $85,000 $9,000 $100,000 $12,000 $75,000 $11,000