Riesemberg Medical Devices is allocating next year's budget among its divisions. As a result, the R&D Division needs to deter which R&D projects to fund. Each project requires various software and hardware and consulting expenses, along with internal esources. A budget allocation of $1,300,000 has been approved, and 35 engineers are available to work on the projects. The group has determined that at most one of projects 1 and 3 should be pursued, and that if project 4 is chosen, then project 3 mu e chosen. Develop a model to select the best projects within the budget. Click the icon to view the project expected return (NPV), resources, and cost data. Which combination of projects maximizes NPV within the budget? Select all that apply.
Riesemberg Medical Devices is allocating next year's budget among its divisions. As a result, the R&D Division needs to deter which R&D projects to fund. Each project requires various software and hardware and consulting expenses, along with internal esources. A budget allocation of $1,300,000 has been approved, and 35 engineers are available to work on the projects. The group has determined that at most one of projects 1 and 3 should be pursued, and that if project 4 is chosen, then project 3 mu e chosen. Develop a model to select the best projects within the budget. Click the icon to view the project expected return (NPV), resources, and cost data. Which combination of projects maximizes NPV within the budget? Select all that apply.
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
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Finance
Transcribed Image Text:Riesemberg Medical Devices is allocating next year's budget among its divisions. As a result, the R&D Division needs to determine
which R&D projects to fund. Each project requires various software and hardware and consulting expenses, along with internal human
resources. A budget allocation of $1,300,000 has been approved, and 35 engineers are available to work on the projects. The R&D
group has determined that at most one of projects 1 and 3 should be pursued, and that if project 4 is chosen, then project 3 must also
be chosen. Develop a model to select the best projects within the budget.
Click the icon to view the project expected return (NPV), resources, and cost data.
Which combination of projects maximizes NPV within the budget? Select all that apply.
U
|
|
||
A. 3
B. 1
C. 5
D. 4
E. 6
F. 2
G. 7
i R&D Project Data
Project
1
234567
7
NPV
$600,000
$340,000
$580,000
$400,000
$725,000
$550,000
$650,000
Internal Engineers
SBTNO78
9
4
12
10
Additional Costs
$196,000
$130,000
$400,000
$180,000
$200,000
$70,000
$225,000
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