QUESTION 5. (Chapter 12.03) 12.5 points

Part a)

Custom Metalworks is considering the expansion of their cable fabrication business for towers, rigging, winches, and many other uses. They have available $275 thousand for investment and have identified the following divisible alternatives, each of which will provide an exit with full return of the investment at the end of a 5 year planning horizon. Each year, Custom Metalworks will receive an annual return as noted below. MARR is 12%.

Investment	Initial Investment	Annual Return
1	$25,000	$7,500
2	$40,000	$12,000
3	$85,000	$20,000
4	$100,000	$22,000
5	$55,000	$17,000

What is the internal rate of return for each investment? IRR 1 enter percentages rounded to the nearest one-hundredth of 1IRR 2 enter percentages rounded to the nearest one-hundredth of 1IRRIRR 3 IRR 4

IRR 5 enter percentages rounded to the nearest one-hundredth of 1 enter percentages rounded to the nearest one-hundredth of 1 enter percentages rounded to the nearest one-hundredth of 1% Round your answers to the nearest one-hundredth of 1%. The tolerance is 0.01. to access the TVM Factor Table Calculator

Part b)

Determine the optimum investment portfolio and state the internal rate of return and present worth for the optimum investment portfolio. Internal rate of return is enter percentages rounded to the nearest one-hundredth of 1% % Present worth is $enter a dollar amount rounded to the nearest dollar Round your answers to the nearest dollar and to the nearest one-hundredth of 1%. The tolerance is 1 for dollar amounts and 0.01 for percentages.

Part c)

In the original problem statement, let the available investment capital be (a) that which was stated in the original problem, (b) 20% greater than stated in the original problem, and (c) 20% less than stated in the original problem. Determine the optimum investment portfolio and state the value for the present worth of the optimum investment portfolio under conditions a, b, and c. a) PW = $enter a dollar amount rounded to the nearest dollar b) PW = $enter a dollar amount rounded to the nearest dollar c) PW = $enter a dollar amount rounded to the nearest dollar Round your answers to the nearest dollar. The tolerance is 1.

Part d)

In addition to the original problem statement, consider the minimum attractive rate of return to be (a) that which was stated in the original problem, 12%; (b) 20% greater than stated in the original problem, 14.4%; and (c) 20% less than stated in the original problem, 9.6%. Determine the optimum investment portfolio and state the value for the present worth of the optimum investment portfolio under conditions a, b, and c. a) PW = $enter a dollar amount rounded to the nearest dollar b) PW = $enter a dollar amount rounded to the nearest dollar c) PW = $enter a dollar amount rounded to the nearest dollar Round your answers to the nearest dollar. The tolerance is 1.

Part e)

In addition to the original problem statement, suppose investments 1, 2 and 5 are divisible and investments 3 and 4 are indivisible. Determine the optimum investment portfolio and state the value for the present worth of the optimum investment. PW = $enter a dollar amount rounded to the nearest dollar Round your answers to the nearest dollar. The tolerance is 1.

P/S: i got part A, polease help me from Part B to E !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!