The book isn't in your list. but here's the question: Perry Enterprises is considering a number of investment possibilities. Specifically, each investment under consideration will draw on the capital account during each of its first three years, but in the long run, each is predicted to achieve a positive net present value (NPV). Listed are the investment alternatives, their net present values, and their capital requirements, and all figures are in thousands of dollars. In addition, the amount of capital available to the investments in each of the next three years is predicted to be $9.5 million, $7.5 million, and $8.8 million, respectively. (It shows a chart that I attached in the images) For the model, I am unsure of how the constraints are supposed to be applied. Do I have to purchase the investment for all three years if I choose to invest in that investment or can I choose to only invest in it one or two years? If I invest in it more than one year, do I still only recieve the NPV one time?
The book isn't in your list. but here's the question:
Perry Enterprises is considering a number of investment possibilities. Specifically, each investment under consideration will draw on the capital account during each of its first three years, but in the long run, each is predicted to achieve a positive
(It shows a chart that I attached in the images)
For the model, I am unsure of how the constraints are supposed to be applied. Do I have to purchase the investment for all three years if I choose to invest in that investment or can I choose to only invest in it one or two years? If I invest in it more than one year, do I still only recieve the NPV one time?
![the model be implementable without any rounding off. 1mat 13,
the solution must contain integer decisions. What are the
optimel
all demand is mel CAUL
pr
producis
as
Joration Tn par
actional solution in part (a)?
unucu-OT VCTSION
4. Investment Choice. Perry Enterprises is considering a
number of investment possibilities, Špecifically, each invest-
ment under consideration will draw on the capital account
during each of its first three years, but in the long run, each
is predicted to achieve a positive net present value (NPV).
Listed here are the investment alternatives, their net pres-
ent values, and their capital requirements, and all figures
are in thousands of dollars. In addition, the amount of
capital available to the investments in each of the next
three years is predicted to be $9.5 million, $7.5 million, and
$8.8 million, respectively.
an
f ws:
Contribution
Fixed Cost
Demand
oduct
$1.20
290,000
S60,000
1.80
200,000
200,000
2.30
50,000
55,000
Project
Basic
Purchase
Advertising
Campaign
One-Phase
Two-Phase
Test
Expansion
Expansion
Market
Research
Equipment
NPV
4,200
6,800
9,600
4,400
8,700
3,500
2,000
5,000
1,000
Year 1 Capital
Year 2 Capital
Year 3 Capital
3,000
2,500
6,000
1,000
3,500
4,000
1,500
1,000
500
4,000
3,500
5,000
1,800
4,000
900
Eac'
1on three machines. The stan
a. Assuming that any combination of the investments is
permitted, which ones should Perry make to maximize NPV?
pr ctivities and capaciies
b. What is the optimal NPV in the combination chosen in
part (a)?
c. Suppose that the expansion investments are mutually exclu-
sive and only one of them can be made. How does this alter the
solution in part (a)?
d. Suppose that the test market cannot be carried out unless
the advertising campaign is also adopted. How does this C
contingency alter the solution in (a)?
Hours per 1,000 Units
Hours
Ma e
Product I
Product J
Product K
Available
A
3.205
3.846
7.692
1,900
B.
2.747
4.808
6.410
1,900
1.923
1,900
3.205
9.615
ing Stock. Poly Products sells packaging tape to indus-
wiatns irom
Ilmaster Ton, wnicn is 15 incnes wide, The](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd65c1de2-d217-488c-bafc-9c8dbe7257d3%2Fb680b218-cb55-4044-be9f-b282a076269b%2Finypxb6.jpeg&w=3840&q=75)
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