Company is considering three major projects

Assignment Help Financial Management
Reference no: EM131852747

A company is considering three major projects labeled A, B and C. Each of the projects can be selected for completion in any of the next 3 years or may be omitted from the portfolio entirely. The total return for each project based on the year it is selected is given in Table. This return captures all relevant cash flows, including investments. It also includes the effects of the time value of money

The investment required for each project occurs entirely within the year for which it is selected. The goal is to maximize the total return. This problem has the following constraints. No more than two projects can be selected in any year. Total investment in any year cannot exceed 9. Project B cannot be selected if project A is not selected, but project A can still be selected without project B (think, for example, in A being the development of some technology and B being the utilization of it). Project A and B cannot be selected in the same year. A project can be selected at most once. Formulate and solve the problem as an IP.

Return for project (thousand $)

Year A B C

1 7 6 4

2 5 4 4

3 8 7 5

Investment (thousand $) 5 3 5

Reference no: EM131852747

Questions Cloud

Write a summary of the steps for improving diversity : Add an executive summary of the steps for improving organizational diversity to the report being submitted to the ELC.
Psychologist selects two random samples : The psychologist wants this difference to be within 5 msec of the difference between the sample means. If the psychologist selects two random samples
Midsemester warning notices affect performance : A psychologist wonders whether midsemester warning notices affect performance. She decides to select a sample of delinquent students
Compare the performance of students : Professor Smith wishes to compare the performance of students in her class on multiple-choice and fill-in-the-blank exams.
Company is considering three major projects : A company is considering three major projects labeled A, B and C. It also includes the effects of the time value of money
Self-fulfilling prophecies : Self-fulfilling prophecies refer to beliefs or expectations that can bring about enhanced (or impaired) performance. Research by Eden (2003)
Why you think the business is using the pricing strategy : Discuss why you think the business is using the pricing strategy that you did.Match each business with the pricing strategy that you believe the business is use
Would it have changed the outcome of the test : In our example problem in suppose we had used X for the text messaging condition and Y for the no distractions condition.
Increase in net worth of your brokerage account : What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss the policy reasons for a statute of limitations

Discuss the policy reasons for a statute of limitations for tax returns.

  What is the net present value of each bid

AOL is considering two proposals to overhaul its network infrastructure. They have received two bids. The first bid from Huawei will require a $22 million upfront investment and will generate $20 million in savings for AOL each year for the next 33 y..

  About the bond valuation

What will the value of the Bond L be if the going interest rate is 5%?

  What is the value of an all-equity firm

What is the value of an all-equity firm? (a) that has a dividend payout ratio of 100 percent,

  Consider single-stock forward contract on apple stock

Consider a single-stock forward contract on Apple stock. Suppose that the contract expires before Apple’s next cash dividend. Does an arbitrage opportunity exist? If so, what is the net profit per share when the forward contract expires? Use a strate..

  Calculate the required new funds assuming full capacity

Calculate the Required New Funds assuming full capacity. Calculate the Required New Funds assuming no new PPE required.

  What will be the firms cash cycle

Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

  What level of independence is appropriate

Should financial analysts be held liable for their opinions regarding the financial health of firms? what level of independence is appropriate?

  An overview of merger and acquisition

The project will provide an overview of Merger and Acquisition, valuation methods, insight on deal design, how to finance the M&A deal, considerations of capital structure such as debt and equity, in addition to terms of exchange.

  How does price of these bonds today compare to issue price

One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5% and pay interest annually. Today, the market rate of interest on these bonds is 7.2%. How does the price of these bonds today compare to the issue price.

  Industries preferred stock currently sells

Skyler Industries's preferred stock currently sells for $40 per share. The cost of preferred stock, Rp, is ____%.

  How much can you get for your bond

You need cash now for an unexpected expense, so you want to sell your bond. If the market rate today is 3%, how much can you get for your bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd