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i need some help with this question from a to h 12.02 PR007 WP Suppose your own consulting firm has been doing well and you
i need some help with this question from a to h
12.02 PR007 WP Suppose your own consulting firm has been doing well and you believe it is time following 5 independent, indivisible, equal-lived investments, each of which guarantees you can exit return as noted below. Your MARR is 10% and you have $250,000 to invest to make a move to add a new, related area of engineering services. To do so, you have identified the it after 4 years and have your initial investment returned to you. Each year, you receive an annual Investment Initial Investment Annual Return $45,000 $4.000 2 $60,000 $7,000 3 $85,000 $9.000 4 $100,000 $12,000 $ $75,000 $11,000 For the original problem Which aberatives should you select to form the optimum portfolio? b. What is the present worth of your selected portfolio? c. What is the IRR for the optimum portfolio? In addition to the original problem statement, you now believe that investments 4 and 5 should be considered mutually exclusive d. Which alteratives should you now select? e. What is the present worth for this portfolio? f. What is the IRR now? Reconsider the original problems & Determine the optimum portfolio (state the investments selected and the portfolio PW) asing (1) the current limit on investment capital. (2) plus 20% and (3) is 20% b. Determine the optimum portfolio (state the investments selected and the portfolio PW) using (1) the current MARR, (2) a MARR of 12%, and (3) a MARR of 8%
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