The Chief Financial Officer of Eaton Medical Devices has determined that the firm$$s capital investment budget will be $$5,000,000$ for the upcoming year.

Unfortunately, this amount is not sufficient to cover all of the positive NPV projects available to the firm.

Project Cost NPV

A $$1,061,191$ $$122,737$

B $561,75858,102$

C $1,647,849280,660$

D $1,026,02089,365$

E $191,87017,568$

F $1,333,62576,960$

G $3,102,642123,240$

H $275,56879,367$

I $2,044,07060,506$

J $1,017,56756,690$

a$-$ Using the Solver, determine which of the above projects should be included in the budget if the firm$$s goal is to maximize shareholder wealth. $($Note: Set the Solver to use the Simplex LP method, and turn off the Ignore Integer Constraints setting.$)$

b$-$ Now assume that the CFO has informed you that projects A and B are mutually exclusive, but one of them must be selected. Change your Solver constraints to account for this new information and find the new solution. $($Use the same options as in part a$.)$

C$-$ Ignore the constraints from part b$.$ The CFO has now informed you that Project I is of great strategic importance to the survival of the firm. It must be accepted. Which projects should be accepted?

D$-$ Explain why the different constraints in parts a$,$ b$,$ and c cause different results. Which one results in the highest total investment? Which one has the highest overall NPV$?$

E$-$ If you rank the projects by profitability index and then select them until you reach a total cost near $$5,000,000$ do you get the same results as when optimizing by NPV$?$ Use the Rank.Avg function to rank the projects by profitability index in descending order.

please show Excel and the formulas