3 views

Uploaded by Nasr Cheaib

402 HW2a

- FINS3625 Marriot Speech
- Divisional Profit Measurement (Collin)-Examples
- Rjet Task 5 Cfo-ceo Reports
- Monte Carlo NPV 1000 Test Corrected FEB1711
- Managerial accounting
- Business Plan on maid service
- 46923162 Life Cycle Costing Theory
- capital budgeting
- ReThinking Simple Payback 9.09
- Rajat Kathuria Neemrana
- Project Appraisal_hotel Project in Sri Lanka
- Net Present Value
- FRM-3-esat
- Jam and Jelly
- BUS 650 Complete Course Files
- Difference Between Accounts & Finance
- Q-j
- 0976 Module 10 RossFCF9ce SM Ch10 FINAL
- empty.docx
- cf

You are on page 1of 4

Project 3: NPV = $2,916; Project 4: NPV = $1,523; Project 5: NPV = $7,066

Project 6: NPV = $6,585

i) With Fractional Investments:

Decision variable definition:

Xj = Fraction of investment of project j. For j = 1,2,3, . . . ,6.

Find X1, X2, . . . ,X6 so as to

MaxZ 4075X1 1429X 2 2916X 3 1523X 4 7066X 5 6585X 6

Subject to:

Dual

Y1 10,000 X 1 +15,000 X 2 +20,000 X 3 +30,000 X 4 +40,000 X 5 +35,000 X 6 97,500

Y3 X1 1

Y4 X2 1

Y5 X3 1

Y6 X4 1

Y7 X5 1

Y8 X6 1

X j 0 For all j

Dual:

Find Y1, Y2, Y3, . . . ,Y8 so as to

MinW = 97,500 Y1 +29,000 Y2 + Y3 + Y4 + Y5 + Y6 + Y7 + Y8

Subject to:

X1 10,000 Y1 + 5,000 Y2 + Y3 4075

X4 30,000 Y1 +15,000 Y2 + Y6 1523

X6 35,000 Y1 + Y8 6585

Y j 0 For all j

Decision Variable Definition

X j ={ 0 if project j is not selected}

Find X1, X2, . . . ,X6 so as to

Max Z 4075X1 1429X 2 2916X 3 1523X 4 7066X 5 6585X 6

Subject to:

10,000 X 1 +15,000 X 2 +20,000 X 3 +30,000 X 4 +40,000 X 5 +35,000 X 6 97,500

X j = 0 or 1, j = 1,2, . . . ,6

Subject to:

10,000 X 1 +15,000 X 2 +20,000 X 3 +30,000 X 4 +40,000 X 5 +35,000 X 6 97,500

X1 X 2 X 3 1

X2 X4 0

X j = 0 or 1, j = 1,2, . . . ,6

NPV Calculations: Project A: NPV = 266; Project B: NPV = 753

Project C: NPV = 683 (rounded to the nearest dollar)

Decision variables: Xj = 0, if project j is not selected,

= 1, if it is selected.

Find X A , X B , X C so as to

Subject to:

5,000X A 7,000X B 8,500X C 13,000 (year 0)

XC XA 0

X A , X B , X C 0 or 1

{Value of extra budget money @ t=2 is 0}

4) Assume that fractional funding is NOT allowed

NPV Calculations: Project A: NPV = 1536; Project B: NPV = 2026

Project C: NPV = 2547 (rounded to the nearest dollar).

Decision variables: Xj = 0, if project j is not selected,

= 1, if it is selected.

Find X A , X B , X C so as to

Subject to:

8,000X A 5,000X B 10,000X C 16,000 (year 0)

XA XB 0

X A , X B , X C 0 or 1

{Value of extra budget money @ t=2 is 0}

5) Decision variables: Xj = fractional level of funding of project j, j = 1,2,3,4.

Find Xj , j = 1,2, 3, 4

So as to:

MaxZ 1,592X1 930X 2 1,344X 3 681X 4

Subject to:

Dual

Y1 1,000 X 1 +2,000 X 2 +1,000 X 3 +3,000 X 4 5,000

Y3 X1 1

Y4 X2 1

Y5 X3 1

Y6 X4 1

X j 0 For all j

b) Y1 =681/3000=.23

Y2 =0 (surplus capital @ t=1)

Y3 proj. 1: cost = 1000*.23 = $230

Return = 1592

Net cash inflow = 1592-230 = 1362

Y4 proj. 2: cost = 2000*.23 = $460

Return = 930

Net cash inflow = 930 460 = 470

Y5 proj. 3: cost = 1000*.23 = $230

Return = 1344

Net cash inflow = 1344-230 = 1114

Y6 =0

Y1 =$0.23; Y2 =0; Y3 =$1362; Y4 =$470; Y5 =$1,114, Y6 =0

- FINS3625 Marriot SpeechUploaded byAsdsa Asdasd
- Divisional Profit Measurement (Collin)-ExamplesUploaded byMuhammad azeem
- Rjet Task 5 Cfo-ceo ReportsUploaded byPraveen Sudarsan
- Monte Carlo NPV 1000 Test Corrected FEB1711Uploaded bypolobook3782
- Managerial accountingUploaded byLuke Ryan
- Business Plan on maid serviceUploaded bySandarva Pal
- 46923162 Life Cycle Costing TheoryUploaded bysekhar_ntpc
- capital budgetingUploaded byrimatripathy
- ReThinking Simple Payback 9.09Uploaded bydarsh2001patel
- Rajat Kathuria NeemranaUploaded bytanzu4u
- Project Appraisal_hotel Project in Sri LankaUploaded bychathura ravilal hapuarachchi
- Net Present ValueUploaded byGuneet Sawhney
- FRM-3-esatUploaded byChuck Yint
- Jam and JellyUploaded bybig john
- BUS 650 Complete Course FilesUploaded byhomeworkbags
- Difference Between Accounts & FinanceUploaded bysameer amjad
- Q-jUploaded byNazira Dz
- 0976 Module 10 RossFCF9ce SM Ch10 FINALUploaded byYuk Sim
- empty.docxUploaded byPranav Chaudhari
- cfUploaded bydefectivepiece
- fmUploaded byTejeesh Chandra Ponnaganti
- 1.201_f08_lecture22Uploaded byRono
- How Much is a Company Worth on the Stock MarketUploaded byAlejandro Bustamante
- cfUploaded byMahedrz Gavali
- PM_CashFlowsUploaded bySantoshi Jain
- Chapter 06Uploaded byMd. Saidul Islam
- Rentabilidad Forestación Pino (Argentina)Uploaded byDavid Moises Salguero Avila
- Group6_Heritage Doll Case.xlsxUploaded bysanket verma
- Thermoeconomics of seasonal latent heat storage system.pdfUploaded byAjit Kamble
- Blankchapter_7Part1Uploaded byEndah Sasmita Waluyo

- M3L2 TableUploaded byNasr Cheaib
- Assignment 1Uploaded byNasr Cheaib
- Expansions Booklet AIESEC USUploaded byNasr Cheaib
- IE 478 Homewwork 2Uploaded byNasr Cheaib
- 5 Why 2-21-17Uploaded byNasr Cheaib
- HW 9 ProblemsUploaded byNasr Cheaib
- HW_8_FALL_2014Uploaded byNasr Cheaib
- HW 8 FALL 2014 SolutionsUploaded byNasr Cheaib
- HW 7 Solution Fall 2014Uploaded byNasr Cheaib
- HW_7_Fall_2014Uploaded byNasr Cheaib
- HW 6 SolutionUploaded byNasr Cheaib
- HW 6 Problem 2 Solution FALL 2014Uploaded byNasr Cheaib
- HW 3 SolutionUploaded byNasr Cheaib
- HW_3_Fall_2014Uploaded byNasr Cheaib
- HW_2_BUploaded byNasr Cheaib
- HW 1 Solution Fall 2014Uploaded byNasr Cheaib
- HW_1_FALL_2014Uploaded byNasr Cheaib
- MCnotes_10_12Uploaded byNasr Cheaib
- MCnotes_10_17Uploaded byNasr Cheaib
- Homework 2a ProblemsUploaded byNasr Cheaib
- Topic for Exam 2 Part IUploaded byNasr Cheaib
- Module 4 - StochasticUploaded byNasr Cheaib
- 86634289-3801-Assign4-soln.pdfUploaded byNasr Cheaib
- Endocrine PancreasUploaded byNasr Cheaib
- 6_Respiratory.pptUploaded byNasr Cheaib
- Selection of Material Shape and Manufacturing Process for a Connecting RodUploaded byNasr Cheaib
- IE 519 Dynamic ProgrammingUploaded byNasr Cheaib

- HVAC ControlsUploaded byashwini_kumar1984
- The Tudors Course SyllabusUploaded bymfric016016
- Pumpkin Cream Cheese Muffins _ Annie's EatsUploaded byDonald Buchwalter
- Forex WalkthroughUploaded byPhuthuma Beauty Salon
- . Konokol ExerciseUploaded bySERT
- ALL Questions and Answers ATPLUploaded byAlbert Aguilera
- Neurodegeneration With Brain Iron Accumulation a Diagnostic AlgorithmUploaded byMitel Alina
- butyl_cellosolveUploaded byHatim Morbi
- bekcUploaded bypaancute8982
- Anemia is a Sign of Having Kidney DiseaseUploaded bymoniquesmith
- Uniform Consent RulesUploaded byBalaji Gurumurthy
- PDMS- Example for New Equipment Creation Using Copy Offset FunctionUploaded byMuthu Kumar
- Trike Design 101Uploaded byrjv23
- Tltp St. IvesUploaded byGilberto Ramos
- Gimp Workshop Part 3Uploaded byapi-3730515
- Baytems' New ESDzap Offers the Most Affordable ESD Simulation on the MarketUploaded byPressRelease Point
- Moac Migration KitUploaded byTreasure Hunter
- partIII_semiconductor_at_equilibrium_print.pdfUploaded byKhanna Dhinesh
- Marlton 0213Uploaded byelauwit
- Real Property Taxation Case DigestUploaded byKimberly Sendin
- Heinrich Moritz Chalybäus - WikipediaUploaded byDimGoan
- Acc Sample PcUploaded byShivaani Tekale
- Project ChecklistUploaded byarunurs1
- Business and transfer ReviewerUploaded byKath O
- Mrs Maddox (Short Story)Uploaded byCarole Marie Alarde-Pagela
- 2 sma sm 1Uploaded byPondok Pesantren Darunnajah Cipining
- Joint Press Release - IGAD-EU-ADA Sign New Grant Agreement on Peace and Security in the Horn - 23 March 2018Uploaded byAnonymous PLtI5ua
- Experimental ProposalUploaded bybaba
- Plaintiffs' Letter re Destroyed Evidence In Stinson TrialUploaded byChristopher Robbins
- Intro to VariabilityUploaded byGenesis Franco