Proposals A, B, C, D, E, F and G are being considered with money flows over...

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Proposals A, B, C, D, E, F and G are being considered with moneyflows over 10 years. A B C D E F G Investment $30,000 $10,000$55,000 $54,000 $20,000 $65,000 $27,000 Net Annual Benefit $7,000$2,400 $10,000 $12,000 $4,000 $11,500 $7,500 Salvage Value $3,000$0 $5,000 $2,000 $500 0 $1,000 Proposal (A and G) are mutuallyexclusive, (C and D) are also mutually exclusive, and proposal Bdepends on C or D. The MARR is set at 11%. a) Formulate the problemwith Integer Programming. b) Which proposal(s) should be selectedif the amount of money available for investment is $100,000?

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First of all let us calculate the IRR for each project which is given below IRR 1984 2018 1332 1816 1526 1199 2486 Year A B C D E F G 0 3000000 1000000 5500000 5400000 2000000 6500000 2700000 1 7000 2400 10000 12000 4000 11500 7500 2 7000 2400 10000 12000 4000 11500 7500 3 7000 2400 10000 12000 4000 11500 7500 4 7000 2400 10000 12000 4000 11500 7500 5 7000 2400 10000 See Answer

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Proposals A, B, C, D, E, F and G are being considered with moneyflows over 10 years. A B C D E F G Investment $30,000 $10,000$55,000 $54,000 $20,000 $65,000 $27,000 Net Annual Benefit $7,000$2,400 $10,000 $12,000 $4,000 $11,500 $7,500 Salvage Value $3,000$0 $5,000 $2,000 $500 0 $1,000 Proposal (A and G) are mutuallyexclusive, (C and D) are also mutually exclusive, and proposal Bdepends on C or D. The MARR is set at 11%. a) Formulate the problemwith Integer Programming. b) Which proposal(s) should be selectedif the amount of money available for investment is $100,000?