Question
1. Three groups of proposals are presented to management for selection. Proposals with the same first letter are mutually exclusive. The available proposals are listed
1. Three groups of proposals are presented to management for selection. Proposals with the same first letter are mutually exclusive. The available proposals are listed below.
| Proposal | Initial Investment | Net Annual Income |
| A1 | $ 5,000 | $ 1,500 |
| A2 | $ 10,000 | $ 2,553 |
| A3 | $ 18,000 | $ 4,298 |
| Proposal | Initial Investment | Net Annual Income |
| B1 | $ 8,000 | $ 2,350 |
| B2 | $ 17,850 | $ 4,856 |
| B3 | $ 22,541 | $ 5,879 |
| B4 | $ 33,000 | $ 8,259 |
| Proposal | Initial Investment | Net Annual Income |
| C1 | $ 10,000 | $ 2,589 |
| C2 | $ 29,000 | $ 5,982 |
a) (10 points) The duration of each proposal is 6 years and the company MARR is 12%. If the total company budget for these proposals is $30,000, which proposals should be funded?
b) (10 points) The project durations must be shortened to 5 years. Which projects should be funded?
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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
0415720060, 978-0415720069
