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2 2022-12-04 7:43 PM The Smooth Construction Company is planning to Invest in several of eight (0) projects. Unfortunately, it faces a range of constraints
2 2022-12-04 7:43 PM The Smooth Construction Company is planning to Invest in several of eight (0) projects. Unfortunately, it faces a range of constraints such as budgetary, number of projects that it can supervise. and the relationship among projects (contingent and/or duplicatlve). The Company is seeking your assistance in selecting the projects that will maximize its Net Present Worth given different sets of constraints. All projects have the same lifespan. Projects initial Cost NPW A 250 000 50,000 B 225 000 45 000 c 275 000 55 000 D 320,000 75,000 E 3400 05330 F 390 000 so 000 G 410,000 55,000 H 430,000 110,000 MARR = 10% Questions 4 to 6 a) Budget = $1,500,000; MARR = 10%. b) The best bundle cannot exceed four (4) projects. c) Individual projects must have a rst (initial) cost > $300,000. (1) Use the NPW decision criterion to determine the \"best" feasible bundle of independent projects. Question 4 (1 point) The best investment bundle consists of projects Question 4 options: \" BDFG F DEGH F DEFG F EFGH Question 5 (1 point) The NPW ($) of the best investment bundle is Question 5 options: F 335,000 F 370,000 F 365,000 \" 385,000 Question 6 (1 point) The total cost ($) of the best investment bundle is Question 6 options: \" 1,500,000 P 1,450,000 F 1,570,000 '" 1,460,000
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