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The following is in the attachement that is mentioned in the question. (tatham.xlsx) Please solve the above using MS Excel and Solver Table. The Tatham
The following is in the attachement that is mentioned in the question. (tatham.xlsx)
Please solve the above using MS Excel and Solver Table.
The Tatham company is considering how to invest its capital budget over the next year. The company has a total budget of $25 million, and if the investment is larger than $4 million, the project will require a project manager. Currently there are only 3 project managers available during the next year. Using the data in the attached spreadsheet, determine how Tatham can optimize its expected NPV. a) What is the optimum expected NPV? (answer in thousands, no comma or \$-sign) b) Suppose Tatham decided to hire another project manager. What, if any, benefit would Tatham receive by doing this? (HINT: think of this as a shadow price; enter your answer in thousands as above) c) What is the optimum capital budget if Tatham only has 2 project managers available? (enter as above formats)Step by Step Solution
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