Parts G & H In addition to the original opportunity statement, CustomMetalworks has determined that investments 3 and4 are mutually exclusive and investment 5 is contingent on either investment 1 or 2 being funded.d. Now, which alternatives should be selected?e. What is the present worth for the optimum investment portfolio?f. What is the IRR for the optimum investment portfolio?Reconsider the original problem:g. Determine the optimum portfolio (state the investments selected and the portfolio PW) using (1) the currentlimit on investment capital, (2) plus 20%, and (3) minus 20%.h. Determine the optimum portfolio (state the investments selected and the portfolio PW) using (1) the currentMARR, (2) a MARR of 14.4%, and (3) a MARR of 9.6%. 12.02-PR004 CustomMetalworks is considering the expansion of their cable fabrication business for towers,rigging, winches, and many other uses. They have available $250,000 for investment and have identified thefollowing indivisible alternatives, each of which will provide an exit with full return of the investment at the endof a 5-year planning horizon. Each year, CustomMetalworks will receive an annual return as noted below. MARRis 12%.Investment Initial Investment Annual Return125$25,000$40,000$85,000$100,000$65,000$7,500$12,000$20,000$22,000$17,000For the original problem:a. Which alternatives should be selected by CustomMetalworks?b. What is the present worth for the optimum investment portfolio?c. What is the IRR for the optimum investment portfolio?

5 indivisible projects are given below:Each investment will provide an exit with full return of the…

12.02-PR004 CustomMetalworks is considering the expansion of their cable fabrication business for towers, rigging, winches, and many other uses. They have available $250,000 for investment and have identified the following indivisible alternatives, each of which will provide an exit with full return of the investment at the end of a 5-year planning horizon. Each year, CustomMetalworks will receive an annual return as noted below. MARI is 12%. Investment Initial Investment Annual Return 1 2 3 4 5 $25,000 $40,000 $85,000 $100,000 $65,000 $7,500 $12,000 $20,000 $22,000 $17,000 For the original problem: a. Which alternatives should be selected by CustomMetalworks? b. What is the present worth for the optimum investment portfolio? c. What is the IRR for the optimum investment portfolio?

12.02-PR004 CustomMetalworks is considering the expansion of their cable fabrication business for towers, rigging, winches, and many other uses. They have available $250,000 for investment and have identified the following indivisible alternatives, each of which will provide an exit with full return of the investment at the end of a 5-year planning horizon. Each year, CustomMetalworks will receive an annual return as noted below. MARI is 12%. Investment Initial Investment Annual Return 1 2 3 4 5 $25,000 $40,000 $85,000 $100,000 $65,000 $7,500 $12,000 $20,000 $22,000 $17,000 For the original problem: a. Which alternatives should be selected by CustomMetalworks? b. What is the present worth for the optimum investment portfolio? c. What is the IRR for the optimum investment portfolio?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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