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Eight projects are available for selection at Hum-Vee Motors. The listed PW values are determined at the corporate MARR of 10% per year and rounded
Eight projects are available for selection at Hum-Vee Motors. The listed PW values are determined at the corporate MARR of 10% per year and rounded to the nearest $1000. Projectlives vary from 5 to 15 years.
Project selection guidelines:
- No more than $400,000 in investment capital is available.
- No negative PW project may be selected.
- At least one project, but no more than three, must be selected.
- The following selection restrictions apply to specific projects:
- Project 4 can be selected only if project 1 is selected.
- Projects 1 and 2 are duplicative; don?t select both.
- Projects 8 and 4 are also duplicative.
- Project 7 requires that project 2 also be selected.
- Identify the viable project bundles and select the best economically justified projects. What is the investment assumption for any remaining capital funds?
2.If as much of the $400,000 as possible must be invested, use the same restrictions and determine the project(s) to select. Is this a viable second choice for investing the $400,000? Why?
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