B. Problem Statement The Delta Power Company is planning to invest in several of eight...

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B. Problem Statement The Delta Power Company is planning to invest in several of eight (8) projects. Unfortunately, it faces a range of constraints such as budgetary, number of projects that it can supervise, and the relationship among projects (contingent and/or duplicative). The Company is seeking your assistance in selecting the projects that will maximize its Net Present Worth given different sets of constraints. All projects have the same lifespan. Projects Initial Cost NPW A 450,000 130,000 375,000 85,000 250,000 60,000 D 400,000 80,000 E 325,000 75,000 F 475,000 90,000 425,000 79,000 H 390,000 95,000 MARR = 10% B G Questions 1 to 3 a) Budget = $2,000,000; MARR = 10%. b) Use the NPW decision criterion to determine the "best" feasible bundle of independent projects. 1. The best investment bundle consists of projects 2. The NPW ($) of the best investment bundle is 3. The total cost (s) of the best investment bundle is B. Problem Statement The Delta Power Company is planning to invest in several of eight (8) projects. Unfortunately, it faces a range of constraints such as budgetary, number of projects that it can supervise, and the relationship among projects (contingent and/or duplicative). The Company is seeking your assistance in selecting the projects that will maximize its Net Present Worth given different sets of constraints. All projects have the same lifespan. Projects Initial Cost NPW A 450,000 130,000 375,000 85,000 250,000 60,000 D 400,000 80,000 E 325,000 75,000 F 475,000 90,000 425,000 79,000 H 390,000 95,000 MARR = 10% B G Questions 1 to 3 a) Budget = $2,000,000; MARR = 10%. b) Use the NPW decision criterion to determine the "best" feasible bundle of independent projects. 1. The best investment bundle consists of projects 2. The NPW ($) of the best investment bundle is 3. The total cost (s) of the best investment bundle is

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