Capital Rationing 2 Wenling Consulting Services has determined its capital investment budget will be $5,000,000 for the coming year. This amount is not sufficient to cover all of the 3 following positive NPV projects available. You have been asked to choose which investments should be made. Project > OM mo Cost 922,775 488,486 1,432,913 892,192 166,844 1,159,674 2,697,950 239,625 1,777,453 884,841 NPV 106,728 50,524 244,053 77,709 15,277 66,922 107,166 69,015 52,614 49,296 - I 17 1. Determine which of the above projects should be included in the budget if the company's goal is to maximize shareholder wealth. 18 (Hint: using the solver and set the simplex LP method) 20 2. Create a scenario analysis showing the project inclueded or not, total NPV, and number of projects include, assuming the following three scenarios: 21 1) All projects are independent and no limitation which project needs to be accepted (question 1). 22 2) Project A and B are mutual exclusive, but one of them must be selected. 23 3) Project I is of great strategic importance to the survival of the company. It must be accepted. Capital Rationing 2 Wenling Consulting Services has determined its capital investment budget will be $5,000,000 for the coming year. This amount is not sufficient to cover all of the 3 following positive NPV projects available. You have been asked to choose which investments should be made. Project > OM mo Cost 922,775 488,486 1,432,913 892,192 166,844 1,159,674 2,697,950 239,625 1,777,453 884,841 NPV 106,728 50,524 244,053 77,709 15,277 66,922 107,166 69,015 52,614 49,296 - I 17 1. Determine which of the above projects should be included in the budget if the company's goal is to maximize shareholder wealth. 18 (Hint: using the solver and set the simplex LP method) 20 2. Create a scenario analysis showing the project inclueded or not, total NPV, and number of projects include, assuming the following three scenarios: 21 1) All projects are independent and no limitation which project needs to be accepted (question 1). 22 2) Project A and B are mutual exclusive, but one of them must be selected. 23 3) Project I is of great strategic importance to the survival of the company. It must be accepted