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Q: Eaton Medical Services is evaluating 10 independent indivisible projects, all with positive NPV. The company's capital budgeting for the year is limited to a

Q: Eaton Medical Services is evaluating 10 independent indivisible projects, all with positive NPV. The company's capital budgeting for the year is limited to a maximum of $5,000,000.

(a) Use solver to find the optimum combination of projects the company should accept, under the assumption that A and B are mutually exclusive and one of them has to be selected.

(b)Ignore the constraint from previous part, assume that project I has to be accepted. Use solver to find optimum combination of projects the company should accept now.

Project

Cost

NPV

A

1,061,191

122,737

B

561,758

58,102

C

1,647,849

280,660

D

1,026,020

89,365

E

191,870

17,568

F

1,333,625

76,960

G

3,102,642

123,240

H

275,568

79,367

I

2,044,070

60,506

J

1,017,567

56,690

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