Excel_Prof Assignment 5

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m05-qa-singh.xlsx
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P6-40

Capital budgeting Please see second tab (P06_40.xlsx to solve this problem) 40. You are give a group of possible investment projects for your company's capital.
For each project, you are given the NPV the project would add to the firm,
Note: All cash amounts are in $millions. as well as the cash outflow required by each project during each year.
Given the information in the file P06_40.xlsx, determine the investments that maximize
Cash outflows in various years, NPV of projects the firm's NPV. The firm has $30 million available during each of the next five years.
Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 All numbers are in millions of dollars.
Year 1 $1 $3 $4 $6 $5 $4 $2 $0 $1 $3 $9 $8
Year 2 $3 $4 $4 $5 $1 $5 $3 $0 $1 $2 $2 $7
Year 3 $4 $2 $3 $3 $2 $2 $1 $3 $4 $4 $4 $1
Year 4 $1 $1 $2 $2 $3 $5 $4 $6 $8 $1 $1 $1
Year 5 $1 $2 $1 $3 $8 $5 $6 $7 $3 $6 $1 $1
NPV $20 $25 $30 $35 $40 $42 $31 $33 $35 $37 $38 $39
Selected projects (1 if selected, 0 if not)
Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12
Budget constraints
Outflow Budget
Year 1
Year 2
Year 3
Year 4
Year 5
Total NPV

Problem 5.10

P06_40.xlsx

Capital budgeting data
Note: All cash amounts are in $millions.
Cash outflows in various years, NPV of projects
Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12
Year 1 $1 $3 $4 $6 $5 $4 $2 $0 $1 $3 $9 $8
Year 2 $3 $4 $4 $5 $1 $5 $3 $0 $1 $2 $2 $7
Year 3 $4 $2 $3 $3 $2 $2 $1 $3 $4 $4 $4 $1
Year 4 $1 $1 $2 $2 $3 $5 $4 $6 $8 $1 $1 $1
Year 5 $1 $2 $1 $3 $8 $5 $6 $7 $3 $6 $1 $1
NPV $20 $25 $30 $35 $40 $42 $31 $33 $35 $37 $38 $39

P6-44

Choosing college courses
44. to graduate from Southeastern University with a major in operations research (OR), a student must
Requirements (along side) that are met by taking available courses (along top) (1 if it fills reqt, 0 if not) complete at least two math courses, at least two OR courses, and at least two computer courses.
Calculus OR Data Structures Bus Stats Simulation Intro to Comp Prog Forecasting Some courses can be used to fulfill more than one requirement: Calculus can fufill the math requirement:
OR Operations Research can fulfill the math and OR requirements: Data Structures can fufill the
Math computer and math requirements; Business Statistics can fufill the OR and computer requirements:
Computer Computer Simulation can fulfill the OR and computer requirements: Introduction to Computer Programming
can fulfill the computer requirement; and Forecasting can fulfill the OR and math requirements.
Calculus OR Data Structures Bus Stats Simulation Intro to Comp Prog Forecasting Some courses are prerequisites for others: Calculus is a rerequisite for Business Statistics; Introduction
Course taken to Computer Programming is a prerequisite for Computer Stumulations and for Data Structures; and
Business Statistics is a prerequisite for Forecasting.
Prerequisite constraints Determine how to minimize the number of courses needed to satisfy the major requirements. (Hint
(Calculus for Bus Stats) because Calculus is a prerequisite for Business Statistics, for example, you will need a constraint
(Intro to Comp Prog for Simulation) that ensures that the decision variable for Calculus is greater than or equal to the decision variable for
(Intro to Comp Prog for Data Structures) Business Statistics).
(Bus Stats for Forecasting)
Major requirement constraints
Courses taken Required
OR
Math
Computer
Total courses