25. A laboratory within Bayer is considering the fi ve divisible investment proposals below to further upgrade their diagnostic capabilities to ensure continued leadership and state-of-the-art performance. The laboratory uses a 10-year planning horizon, has a MARR of 10%, and a capital limit of $1,000,000.

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 all investments except investment 3 are divisible and at least 2 investments must be pursued fully or partially and no more than 3 can be pursued fully or partially. Use Excel® and SOLVER.

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Investment Initial Investment Annual Receipts Annual Disbursements Salvage Value 12346 $300,000 $205,000 $125,000 $50,000 $400,000 $230,000 $130,000 $50,000 $450,000 $245,000 $140,000 $60,000 $500,000 $260,000 $135,000 $75,000 5 $600,000 $290,000 $150,000 $75,000