Question
A company has nine projects under consideration. The NPV added by each project and the capital required by each project during the next two years
A company has nine projects under consideration. The NPV added by each project and the capital required by each project during the next two years is given in Table 9. All
TAB LE 9
figures are in millions. For example, Project 1 will add $14 million in NPV and require expenditures of $12 million during year 1 and $3 million during year 2. Fifty million is available for projects during year 1 and $20 million is available during year 2. Assuming we may undertake a fraction of each project, how can we maximize NPV?
Project | |||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |
Year 1 Outflow | 12 | 54 | 6 | 6 | 30 | 6 | 48 | 36 | 18 |
Year 2 Outflow | 3 | 7 | 6 | 2 | 35 | 6 | 4 | 3 | 3 |
NPV | 14 | 17 | 17 | 15 | 40 | 12 | 14 | 10 | 12 |
plz answer using excel , and show how u sued the solver
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