Aerotron Radio Inc. has $250,000 available and its engineering staff has proposed the followingindivisibleinvestments. With each, Aerotron can exit at the end of its planning horizon of 5 years and have its initial investment returned. In addition, each year Aerotron will receive the annual return shown below. MARR is 12%.

Investment Initial Investment Annual Return

1 $75,000 $10,800

2 $65,000 $12,000

3 $50,000 $7,500

4 $80,000 $13,750

5 $100,000 $15,750

For the original problem:

a.Which investments should Aerotron select for the optimum portfolio?

b.What is the present worth for the optimum investment portfolio?

c.What is the IRR for the optimum investment portfolio?

USE EXCEL TO SHOW FORMULAS Use Linear Programming and Solver on this problem.