Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled oil sales with Ford is a part of the requirement. Develop all possible mutually exclusive bundles under the additional following restrictions and select the best projects. The corporate MARR is 10% per year. Write both the hand solution PW relations and spreadsheet functions necessary to perform the analysis. (a) A maximum of $4 million can be invested. (b) A larger budget of $5.5 million is allowed, but no more than two vendors can be selected. (c) There is no limit on spending. Initial Life, Annual Net Vendor Investment, $ Years Revenue, $/Year A −1.5 million 8 360,000 B −3.0 million 10 600,000 C −1.8 million 5 620,000 D −2.0 million 5 520,000
Dwayne has four independent vendor proposals
to contract the nationwide oil recycling services
for the Ford Corporation manufacturing plants.
All combinations are acceptable, except that
vendors B and C cannot both be chosen. Revenue
sharing of recycled oil sales with Ford is a part
of the requirement. Develop all possible mutually
exclusive bundles under the additional following
restrictions and select the best projects.
The corporate MARR is 10% per year. Write
both the hand solution PW relations and
spreadsheet functions necessary to perform the
analysis.
(a) A maximum of $4 million can be invested.
(b) A larger budget of $5.5 million is allowed,
but no more than two vendors can be selected.
(c) There is no limit on spending.
Initial Life, Annual Net
Vendor Investment, $ Years Revenue, $/Year
A −1.5 million 8 360,000
B −3.0 million 10 600,000
C −1.8 million 5 620,000
D −2.0 million 5 520,000
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