Capital Rationing 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 following positive NPV projects available. You have been asked to choose which Investments should be made. INPUT mo Cast 922,775 488,486 1,432,913 892,192 166,844 1,159,674 2,697,950 239,625 1,777,453 884,841 106,728 50,524 244,053 77,709 15,277 66,922 107,166 69,015 52.614 49,296 17 1. Determine which of the above projects should be included in the budget if the company's goal is to maximize shareholder wealth (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: 1) All projects are independent and no limitation which project needs to be accepted (question 1). 2) Project A and B are mutual exclusive, but one of them must be selected. 3) Project is of great strategic importance to the survival of the company, it must be accepted. Capital Rationing 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 following positive NPV projects available. You have been asked to choose which Investments should be made. INPUT mo Cast 922,775 488,486 1,432,913 892,192 166,844 1,159,674 2,697,950 239,625 1,777,453 884,841 106,728 50,524 244,053 77,709 15,277 66,922 107,166 69,015 52.614 49,296 17 1. Determine which of the above projects should be included in the budget if the company's goal is to maximize shareholder wealth (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: 1) All projects are independent and no limitation which project needs to be accepted (question 1). 2) Project A and B are mutual exclusive, but one of them must be selected. 3) Project is of great strategic importance to the survival of the company, it must be accepted
