Business, 20.08.2021 02:40 hurie98

The Chief Financial Officer of Acme Medical Devices has determined that the firm’s capital investment budget will be $5,000,000 for the upcoming year. Unfortunately, this amount is not sufficient to cover all of the positive-NPV projects available to the firm. Project Cost NPV
A $1,132,524 $106,728
B 448,122 50,524
C 1,925,371 244,053
D 2,308,092 77,709
E 1,625,001 15,277
F 457,853 66,922
G 1,810,303 107,166
H 1,939,862 69,015
I 701,788 52,614
J 2,367,845 49,296
You have been asked to choose which investments should be made.
A. Using Solver, determine which of the above projects should be included in the budget if the firm's goal is to maximize shareholder wealth. (Note: Set Solver to use the Simplex LP method, and turn off the Ignore Integer Constraints setting.)
B. Now assume that the CFO has informed you that projects A and B are mutually exclusive, but one of them must be selected. Change your Solver constraints to account for this new information and find the new solution. (Use the same options as in part a.)
C. Ignore the constraints from part B. The CFO has now informed you that Project I is of great strategic importance to the survival of the firm. It must be accepted. Which projects should be accepted?

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The Chief Financial Officer of Acme Medical Devices has determined that the firm’s capital investmen...

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