Yakima Construction Corporation $($YCC$)$ Is considering a number of different development projects. The cash outflows that would be

requlred to complete each project are indicated in the table below, along with the expected net present value of each project $($all

values in millions of dollars$).$

NPV $($$million$)$

Project $1$

$12$

$12$

Project $2$

$15$

$15$

Cumulative

Year $1$

Year $2$

Year $3$

Year $4$

Click here for the Excel Data Flle

Each project must be done in full $($with the corresponding cash flows for all four years$)$ or not done at all. Furthermore, there are the

following additional considerations. Project $1$ cannot be done unless Project $2$ is also undertaken, and projects $3$ and $4$ would compete

with each other, so they should not both be chosen. YCC expects to have the following cash avallable to invest in these projects: $$20$

million for year $1,$$$25$ million for year $2,$$$16$ million for year $3,$ and $$12$ million for year $4.$ Any avallable money not spent in a given year

Is then avallable to spend the following year. YCC$\text{'}$s policy is to choose thelr projects so as to maximize their total expected NPV$.$

Formulate and solve this model on a spreadsheet.

a$.$ Determine the combination of each project that YCC should undertake to maximize total expected NPV$.$

Note: Leave no cells blank. Enter $"0"$ wherever requlred.

b$.$ Determine the NPV$.$

NPV

million