Question
Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream
Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, and the capital requirements are summarized in the attached file. The available capital funds over the next three years are $7,500, $10,000 and $10,000. Solve the model to maximize the net present value in dollars. Suppose that one and only one of the warehouse projects must be completed. Modify the formulation to reflect this new situation. What is the new maximum net present value in dollars?
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