Ee 437. A closely held, publicly traded firm faces self-imposed capital rationing constraints of$100 million in this period and $75 million in the next period. It has to choose among the following projects (in millions):Investment OutlayProjectABсDEFGHJ$15$40$10$20$20$30$35$25Current Period$25$30$15$25$10$15$25$25$15$20$30$10$20$35$25$10NextPeriod$10$15$30NPV$20$20$15Set up the linear programming problem, assuming that fractions and multiples of projects cannot be taken.

Here, LP formulation is shown below, Decision variables: Decision variables are Project A to J,…

Answered: Set up the linear programming problem,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

See similar textbooks

Similar questions

A project has the following cash flows : Year Cash Flows 0 −$ 12,200 1 5,410 2 7,810 3 5,200 4 −1,540 Assuming the appropriate interest rate is 8 percent, what is the MIRR for this project using the discounting? approach
Conoly Co. has identified an investment projectwith the following cash flows. If the discount rate is 10 percent, what is the present valueof these cash flows? What is the present value at 18 percent? At 24 percent?Year Cash Flow1 $ 9602 8403 9354 1,350
Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. What are the budgeted sales for July? Multiple Choice $1,440,000 $1,600,000 $288,000 $1,152,000
The cash flow details of a public project is as follows Initial cost =BD 210000 Annual operating cost = BD 10000 Worth of annual benefits = BD 12,000 Worth of annual disbenefits = BD 1245 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years Using benefit-cost ratio method and find out the economical acceptability of the public project. Use PW and AW methods to find out the equivalent worth of costs, benefits and disbenefits, also discuss why it is profitable(Use excel)
Project M has a 10 y 3 Project M has a 10 year life span and you, as the consultant, are looking at its NPV worksheet. Which of these is the correct way of calculating the Discount Rate for Year 7. %CC is the Cost of Capital for the project. O All the other 4 answers are incorrect. O (1+%CC) 01/(1+%CC)^7 O 1/(1+%CC) O (1+%CC)^?
29) Which of the following Capital Budgeting Method used to calculate using the condition of NPV being 0 for a project? a. None of the options b. Internal Rate of Return c. Accounting Rate of Return d. Payback period
9.3 Consider another set of net cash flows: Year Cash Flow ($) 0 2,000 1 2,000 2 0 3 1,500 4 2,500 5 4,000 What is the net present value of the stream if the opportunity cost of capital is 10 percent? What is the value of the stream at the end of year 5 if the cash flows are invested in an account that pays 10 percent annually? What cash flow today (time 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of year 5? (Assume that the cash flows for years 1 through 5 remain the same.)
Part 1: Find the present worth at i = 10% per year for the cash flow series shown below. 0 1 2 3 4 5 6 7 8 Year $200 $200 $200 $90 $90 $90 Part 2: Recalibration of sensitive measuring devices costs $8,000 per year. If the machine will be recalibrated for each of 6 years starting 3 years after purchase, calculate the 8-year equivalent uniform series at 16% per year.
Which of the following information is required to calculate the interest par dier for a closing? A) The monthly payment amount B) The term of the loan C) The interest rate D) The amount of the escrow
The purpose of liquidity analysis is to estimate if: A. the supply of labor will be sufficient to carry out the plan B. the supply of irrigation water will be sufficient C. cash inflows will be sufficient to meet expected cash outflows D. net farm income will be positive or negative
8.5 Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. Its tax-exempt debt currently requires an interest rate of 6.2 percent, and its target capital structure calls for 60 percent debt financing and 40 percent tnequity (fund capital) financing. Its estimated cost of equity is 15.4 percent. What is Morningside’s corporate cost of capital?
Which of the following step is followed immediately after Identification of various investments under capital budgeting process? a. Final approval O b. Fixing Property O c. Identification of Various investments O d. Matching of available resources Windows buii انتقل إلى الإعدادت لتنشي pronosed capital out

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS