What is the final value of the objective function

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The CFO of your company has determined that the firm’s capital investment budget will be limited to $3,000,000 for the upcoming year. Unfortunately, this amount is not sufficient to cover all of the proposed projects under consideration at the firm. Each potential project is labeled with a single letter (A-J). The calculated values (NPV) for each project, in order are: $72,658 ; $36,418 ; $212,150 ; $70,925 ; $11,400 ; $56,842 ; $93,600 ; $65,350 ; $48,842 ; and $39,815. The initial investment required for each respective project: $628,200 ; $352,100 ; $1,245,600 ; $814,300 ; $124,500 ; $958,000 ; $2,356,400 ; $226,900 ; $1,650,000 ; and $714,650. The projects require supervision (A-J: 13, 15, 8, 6, 24, 10, 5, 9, 3, and 11 resource months respectively) and there are a total of 50 resources months of supervision available across all of these projects. We are also informed that projects A, D, and H are mutually exclusive. Which projects should be selected for action in the current budget cycle and what is the final value of the objective function? (Assume this is a maximization problem)

Reference no: EM131064894

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