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pital budgeting model 5 put data on potential investments ($ millions) vestment 1 2 ost $5,0 $2,4 PV $5,6 $2,7 SOI 12,0% 12,5% 3 $35

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pital budgeting model 5 put data on potential investments ($ millions) vestment 1 2 ost $5,0 $2,4 PV $5,6 $2,7 SOI 12,0% 12,5% 3 $35 $3,9 11.4% $5,9 $6,8 15,3% $6,9 $7,7 11,6% 6 $4,5 $5,1 13,3% 2 $3,0 $3,3 10,0% UNGRADED HW Question 1: In the model as shown, what is the ROI for the solution as shown? (create a formula to calculate it in cell B19) Question 2: If the budget constraint in cell 014 could be increased by 53 what would be the maximum increase you could achieve in NPV in cell 017? Decisions: whether to invest 1 it yes, if no 0 0 1 0 1 1 0 Budget constraint Challenge questions: What would be the ROI of the total amount invested under question 2? Is this higher or lower than the RON in question 12 Wiv? What would be the ROI of the odovial amount invested under question 2? Total cost $14,9 Budget $15 Objective to maximize Total NPV $16,7 There are hints on the next tab, and then solutions But don't look until you have tried Total ROI Other things to try Look at all the formulas in the cells. What happens if you put 0.5 or 2 or 3 in one of the cells that currently have Os and is in row 107 24 25 26 27 28 pital budgeting model 5 put data on potential investments ($ millions) vestment 1 2 ost $5,0 $2,4 PV $5,6 $2,7 SOI 12,0% 12,5% 3 $35 $3,9 11.4% $5,9 $6,8 15,3% $6,9 $7,7 11,6% 6 $4,5 $5,1 13,3% 2 $3,0 $3,3 10,0% UNGRADED HW Question 1: In the model as shown, what is the ROI for the solution as shown? (create a formula to calculate it in cell B19) Question 2: If the budget constraint in cell 014 could be increased by 53 what would be the maximum increase you could achieve in NPV in cell 017? Decisions: whether to invest 1 it yes, if no 0 0 1 0 1 1 0 Budget constraint Challenge questions: What would be the ROI of the total amount invested under question 2? Is this higher or lower than the RON in question 12 Wiv? What would be the ROI of the odovial amount invested under question 2? Total cost $14,9 Budget $15 Objective to maximize Total NPV $16,7 There are hints on the next tab, and then solutions But don't look until you have tried Total ROI Other things to try Look at all the formulas in the cells. What happens if you put 0.5 or 2 or 3 in one of the cells that currently have Os and is in row 107 24 25 26 27 28

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