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B. Problem Statement The Delta Power Company is planning to invest in several of eight (8) projects. Unfortunately, it faces a range of constraints such

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B. Problem Statement The Delta Power Company is planning to invest in several of eight (8) 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 duplicative). 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 A B D E F G H Initial Cost 450,000 375,000 250,000 400,000 325,000 475,000 425,000 390,000 MARR = 10% NPW 130,000 85,000 60,000 80,000 75,000 90,000 79,000 95,000 Questions 13 to 15 a) Budget = $2,500,000; MARR = 10%. b) Projects A, B and F must be selected. c) Projects C, D and Goverlap significantly. Select at most one project. d) A maximum of five (5) projects must be selected. e) Use the NPW decision criterion to determine the "best" feasible bundle of projects. 13. The best investment bundle consists of projects 14. The NPW ($) of the best investment bundle is 15. The total cost ($) of the best investment bundle is B. Problem Statement The Delta Power Company is planning to invest in several of eight (8) 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 duplicative). 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 A B D E F G H Initial Cost 450,000 375,000 250,000 400,000 325,000 475,000 425,000 390,000 MARR = 10% NPW 130,000 85,000 60,000 80,000 75,000 90,000 79,000 95,000 Questions 13 to 15 a) Budget = $2,500,000; MARR = 10%. b) Projects A, B and F must be selected. c) Projects C, D and Goverlap significantly. Select at most one project. d) A maximum of five (5) projects must be selected. e) Use the NPW decision criterion to determine the "best" feasible bundle of projects. 13. The best investment bundle consists of projects 14. The NPW ($) of the best investment bundle is 15. The total cost ($) of the best investment bundle is

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