Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Engineering Economics: I need help with setting up this problem in Excel to derive the answers: Please show the Excel formulas/function. 22. Gymnastics4Life is a

Engineering Economics: I need help with setting up this problem in Excel to derive the answers: Please show the Excel formulas/function.

image text in transcribed

22. Gymnastics4Life is a high-end facility for beginning, intermediate, and elite gymnasts. The latter are drawn from the nearby region for exclusive and dedicated training. In order to maintain their edge, G4L trustees wish to invest up to $350.000 in new methods for critical evaluation and training and are considering the following independent, divisible, investments, each of which guarantees return of the initial investment at the end of a planning horizon of 7 years. In addition, G4L will receive annual returns as noted below. MARR is 12%. Investment Hantu Initial Investment $150,000 $130,000 $100,000 $160,000 $200,000 Annual Return $24,000 $22,000 $15,000 $25,000 $30,000 a. Determine the optimum portfolio, including which investments are fully or partially (if partial, give percentage) selected. You may use Excel, do not use SOLVER ANSWER b. Determine the optimum portfolio and its PW, specifying which investments are fully or partially give percentage) selected using (1) the current limit on investment capital, (2) plus 20%, and (3) minus 20%. Use Excel and SOLVER ANSWER c. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage) selected using (1) the current MARR, (2) plus 20%, and (3) minus 20%. Use Excel and SOLVER. ANSWER Determine the optimum investment portfolio and its PW when investments 1 and 2 are divisible and investments 3, 4, and 5 are indivisible. Use Excel and SOLVER ANSWER 22. Gymnastics4Life is a high-end facility for beginning, intermediate, and elite gymnasts. The latter are drawn from the nearby region for exclusive and dedicated training. In order to maintain their edge, G4L trustees wish to invest up to $350.000 in new methods for critical evaluation and training and are considering the following independent, divisible, investments, each of which guarantees return of the initial investment at the end of a planning horizon of 7 years. In addition, G4L will receive annual returns as noted below. MARR is 12%. Investment Hantu Initial Investment $150,000 $130,000 $100,000 $160,000 $200,000 Annual Return $24,000 $22,000 $15,000 $25,000 $30,000 a. Determine the optimum portfolio, including which investments are fully or partially (if partial, give percentage) selected. You may use Excel, do not use SOLVER ANSWER b. Determine the optimum portfolio and its PW, specifying which investments are fully or partially give percentage) selected using (1) the current limit on investment capital, (2) plus 20%, and (3) minus 20%. Use Excel and SOLVER ANSWER c. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage) selected using (1) the current MARR, (2) plus 20%, and (3) minus 20%. Use Excel and SOLVER. ANSWER Determine the optimum investment portfolio and its PW when investments 1 and 2 are divisible and investments 3, 4, and 5 are indivisible. Use Excel and SOLVER

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Navigating The Investment Minefield A Practical Guide To Avoiding Mistakes Biases And Traps

Authors: H. Kent Baker , Vesa Puttonen

1st Edition

1787690563,1787690539

More Books

Students also viewed these Finance questions

Question

How do books become world of wonder?

Answered: 1 week ago