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What is the total net present value of these projects? Total net present value

What is the total net present value of these projects? Total net present value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 3 projects. Projects 3 and 5 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 2 3 4 5 Cost $200,000 $240,000 $300,000 $220,000 $280,000 Net Present Value $700,000 $720,000 $600,000 $570,000 $620,000
Transcribed Image Text:Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 3 projects. Projects 3 and 5 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 2 3 4 5 Cost $200,000 $240,000 $300,000 $220,000 $280,000 Net Present Value $700,000 $720,000 $600,000 $570,000 $620,000
What is the total net present value of these projects? Total net present value
Transcribed Image Text:What is the total net present value of these projects? Total net present value
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