StockCo is considering five investments. The net present value (NPV) and capital require- ments over the next two years are summarized as follows: Net Present Capital Requirements ($) Value ($) Year 1 Year 2 Investment 1 4,000 2,500 1,000 Investment 2 6,000 2,000 3,500 Investment 3 10,000 6,500 2,500 Investment 4 7,000 5,000 1,500 Investment 5 2,500 1,000 1,000 Capital funds available for year 1 and year 2 are $7,500 and $5,500 respectively. In addition, StockCo needs to satisfy the following requirements: •StockCo can invest in at most three investments. •Investment 2 or 3 must be invested but not both. •If Investments 1 and 5 must be invested, they must be invested simultaneously. •If StockCo invests in investment 2, they must also invest in investment 4. a) Formulate an Integer Programming that will maximize the NPV of Stockco from all investments. b) Solve the problem by using Excel Solver. Show the optimal solution and optimal value in your printouts.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
StockCo is considering five investments. The
ments over the next two years are summarized as follows:
Net Present Capital Requirements ($)
Value ($) Year 1 Year 2
Investment 1 4,000 2,500 1,000
Investment 2 6,000 2,000 3,500
Investment 3 10,000 6,500 2,500
Investment 4 7,000 5,000 1,500
Investment 5 2,500 1,000 1,000
Capital funds available for year 1 and year 2 are $7,500 and $5,500 respectively. In addition,
StockCo needs to satisfy the following requirements:
•StockCo can invest in at most three investments.
•Investment 2 or 3 must be invested but not both.
•If Investments 1 and 5 must be invested, they must be invested simultaneously.
•If StockCo invests in investment 2, they must also invest in investment 4.
a) Formulate an Integer Programming that will maximize the NPV of Stockco from all
investments.
b) Solve the problem by using Excel Solver. Show the optimal solution and optimal value in your printouts.
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