1. Formulate a PV LP model for selecting among the three projects described below. MARR...
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Accounting
1. Formulate a PV LP model for selecting among the three projects described below. MARR = 15%. There is a budget of $16,000 at time 0, and the projects are required to generate $4,000 at time 1 and $1,300 at time 2. The life of each project is 10 years. The projects are independent except that A cannot be selected except B is also selected. What is the value of extra budget money at time 2?
Project Investment Annual Cash Flow
A $8,000 $1,900
B 5,000 1,400
C 10,000 2,500
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