Question
Question 56 Proposals A, B, C, D, E, F and G are being considered with money flows over 10 years. Investment Net Annual Benefit Salvage
Question 56
Proposals A, B, C, D, E, F and G are being considered with money flows over 10 years.
| Investment | Net Annual Benefit | Salvage Value | |
| A | $20,000 | $7,000 | $3,000 |
| B | $10,000 | $2,200 | $0 |
| C | $40,000 | $10,000 | $5,000 |
| D | $45,000 | $12,000 | $2,000 |
| E | $15,000 | $2,800 | $500 |
| F | $55,000 | $14,000 | 0 |
| G | $25,000 | $8,000 | $1,000 |
Proposal (A and E) are mutually exclusive, (C and D) are also mutually exclusive, and proposal B depends on C or D. The MARR is set at 10% and the amount of money available for investment is $110,000?
When formulating the budget allocation problem with linear programming, the decision variables are , , , , , , . . The investments for these proposals are , , , , , , .
The net present values for these proposals are , , , , , ,
The constraint for proposal B depends on C and D should be:
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
