Question 9 Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised of doctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and use a spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetary values are in PhP 1000 units. PROJECTS 1 -5,000 5 Investment, PhP Life, years 2 1,000 1,700 2,400 3,000 3,800 3 -8,000-9,000 5 3 4 -10,000 4 Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates I 2 3 4 500 500 500 500 10,500 5,000 5,000 2,000 What project/s will be selected? ANSWER: Blank 1 and Blank 2 What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas. How much is the total investment? ANSWER: Blank 4 million 0 0 0 17,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

A6.

 

Question 9
Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised of
doctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and use
a spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetary
values are in PhP 1000 units.
PROJECTS
1
2
3
4
Investment, PhP
-5,000 -8,000 -9,000 - 10,000
Life, years
5
5
3
4
Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates
1
1,000
500
5,000
0
2
1,700
500
5,000
0
3
2,400
500
2,000
0
4
3,000
500
17,000
5
3,800
10,500
What project/s will be selected? ANSWER: Blank 1 and Blank 2
What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas.
How much is the total investment? ANSWER: Blank 4 million
Blank 1 Add your answer
Blank 2 Add your answer
Blank 3 Add your answer
Blank 4
Add your answer
Transcribed Image Text:Question 9 Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised of doctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and use a spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetary values are in PhP 1000 units. PROJECTS 1 2 3 4 Investment, PhP -5,000 -8,000 -9,000 - 10,000 Life, years 5 5 3 4 Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates 1 1,000 500 5,000 0 2 1,700 500 5,000 0 3 2,400 500 2,000 0 4 3,000 500 17,000 5 3,800 10,500 What project/s will be selected? ANSWER: Blank 1 and Blank 2 What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas. How much is the total investment? ANSWER: Blank 4 million Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 4 Add your answer
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Valuing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education