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?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 02:20

The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.

Answers: 1

Answer

Business, 22.06.2019 06:40

As a finance manager at allsports communication, charlie worries about the firm's borrowing requirements for the upcoming year. he knows the benefit of estimating allsports' cash disbursements and short-term investment expectations. facing these concerns, a(n) would provide charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. capital budget cash budget operating budget line item budget

Answers: 3

Answer

Business, 22.06.2019 16:00

Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)

Answers: 2

Answer

Business, 22.06.2019 18:00

If you would like to ask a question you will have to spend some points

Answers: 1

Answer

You know the right answer?

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

Questions